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SUNDAY, NOVEMBER 8, 2009
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Airbus Execs Accused of Insider Trading

Ex-CEO, others sold millions before A380 delay announced

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(Newser) – 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.

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
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...   (Associated Press)
Then co-chairman of EADS Noel Forgeard is seen during a new conference in Paris in this Jan. 15, 2004 file photo. A lengthy probe by France's stock market authority points to
Then co-chairman of EADS Noel Forgeard is seen during a new conference in Paris in this Jan. 15, 2004 file photo. A lengthy probe by France's stock market authority points to "massive insider trading"...   (Associated Press)
Then EADS co-chief executive Noel Forgeard, left, and Arnaud Lagardere, the French defense-to-media group Lagardere chairman and CEO, arrive at the Hotel Matignon, in Paris, in this May 26, 2006 file photo. A lengthy probe by France's stock market authority points to
Then EADS co-chief executive Noel Forgeard, left, and Arnaud Lagardere, the French defense-to-media group Lagardere chairman and CEO, arrive at the Hotel Matignon, in Paris, in this May 26, 2006 file...   (Associated Press)
The Airbus A380, the world's largest commercial airliner, is seen after landing,Tuesday, Oct. 2, 2007, for its first visit to Bradley International Airport in Windsor Locks, Conn. The 239-foot-long airliner has wings as long as a football field and is powered by four engines. Test flight captain, Frank Chapman,...
The Airbus A380, the world's largest commercial airliner, is seen after landing,Tuesday, Oct. 2, 2007, for its first visit to Bradley International Airport in Windsor Locks, Conn. The 239-foot-long airliner...   (Associated Press)
Noel Forgeard, then co-chief executive of Airbus parent company EADS, is seen during his testimony to French lawmakers at the National Assembly in Paris, in this June 28, 2006 file photo. A lengthy probe by France's stock market authority points to
Noel Forgeard, then co-chief executive of Airbus parent company EADS, is seen during his testimony to French lawmakers at the National Assembly in Paris, in this June 28, 2006 file photo. A lengthy probe...   (Associated Press)
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