Airbus SE (OTCMKTS: EADSY) is facing proposed class-action lawsuits filed by U.S. shareholders alleging that the European aerospace and defense company committed securities fraud.
Over the past few days, several law firms announced that they are suing Airbus on behalf of shareholders who are seeking unspecified damages. The move comes after the Wall Street Journal’s March 15 report about the company’s $4 billion bribery settlement.
In the proposed class-action lawsuit filed by shareholder Andrew Kornecki in the U.S. District Court for the District of, New Jersey, he alleged that Airbus made false and misleading statements regarding its business, operational, and compliance policies between 24 February 2016 and 30 July.
Kornecki also named Airbus current CEO Faury and his predecessor, Tom Enders, and current CFO Dominik Asam and his predecessor, Harald Wilhelm as defendants.
Allegations against Airbus and its executives
The shareholder specifically alleged that the defendants failed to disclose or made false and misleading statements that:
- Airbus’ policies and protocols were insufficient to ensure its compliance with relevant anti-corruption laws and regulations;
- The company committed bribery, corruption, and fraud to boost its business particularly its commercial aircraft, helicopter, and defense transactions;
- Airbus generated its earnings in part from unlawful conduct therefore unsustainable;
- The resolution of government investigations into allegations of corruption would foreseeable cost Airbus billions of dollars in settlements and legal fees and the company will be subject to ongoing government probes and oversight.
- The company’s public statements were materially false and misleading at all relevant times.
In August 2012, the United Kingdom Serious Fraud Office (SFO) launched a criminal investigation into GPT Special Project Management Ltd, a subsidiary of Airbus. The focus of the probe was GPT’s service contract in Saudi Arabia.
