Airbus Execs Accused of Insider Trading

Ex-CEO, others sold millions before A380 delay announced
By Jason Farago,  Newser Staff
Posted Oct 4, 2007 9:05 AM CDT
Airbus Execs Accused of Insider Trading
Then European Aeronautic Defence & Space Co. (EADS) joint CEOs Thomas Enders, left, and Noel Forgeard chat during a statement for the 2005 FY earnings in Paris, in this March 8, 2006 file photo. A lengthy probe by France's stock market authority points to "massive insider trading" at Airbus parent EADS,...   (Associated Press)

Accusations of "massive" insider trading by Airbus executives and shareholders have exploded into full-out political scandal. French investigators have learned that 21 top executives and two big shareholders in EADS, the Franco-German consortium that owns the airplane company, cashed in stocks shortly before Airbus announced a June, 2006, production delay for its A380. The setback caused shares to drop 30% in one day.

Airbus' former CEO cashed in $3.4 million in shares before the drop, which he terms "an unfortunate coincidence." One shareholder accused of insider trading is Lagardere, the media consortium headed by a friend of Nicolas Sarkozy. Lagardere is now suing Le Figaro, the French daily that broke the accusations, after its own stock price dropped 6% yesterday. (More Airbus A380 stories.)

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