The Guardian reports that Galliano was arrested in Paris for "alleged assault and making anti-Semitic remarks after a late-night drinking session."
Multiple news agencies including the BBC and the New York Times subsequently reported that he has been suspended by Dior pending an inquiry into the allegations.
Galliano, a native of Gibraltar, was in the fashionable Marais district and allegedly verbally accosted a couple sitting at a nearby cafe.
Galliano was then arrested and taken to a police station for a sobriety test, where he was found to be just over the legal alcohol limit.
Police then escorted the designer home without filing any charges against him. Reuters reports that "one policeman said the outburst was prompted by stress ahead of fashion week, which starts next Monday and at which Dior's show is always in the spotlight."