Airbus Insider Dealing Allegations Hot Up

Management at the underfire airplane manufacturer EADS have today been unveiled as having had knowledge of the factors interrupting the launch of the Airbus A380 model prior to offloading their shares, which could pave the way for insider dealing charges against those involved.

The allegations come following a high profile investigation into what have been described as ‘irregular’ share trading patterns, which saw company insiders offload substantial equity stakes immediately prior to the public announcement of production problems, which ultimately knocked the company’s shares by over a quarter.

However until know management at EADS, the parent company of manufacturing giant Airbus, have until now denied that they had had any knowledge of the factors that halted production at the time they sold their shareholdings, which is now alleged to be untrue.

The news comes in the wake of independent examinations into the share dealings conducted by German authorities, and has seen senior French politicians taken to task over their involvement in the transactions, with the French government also alleged to have sold a stake on the reliance of this manner of inside information.

The allegations come from Jean Galli Douani, a French businessmen that was dealing with the company at the time of the share sales, after he came forward to disclose that management must have been aware of the problems, based on correspondence shared at the time of the event.

Insider dealing it the practice of using privileged knowledge that, if and when released publicly, would be sure to affect a share price prior to its public disclosure, and is criminalised throughout the EU as a market distortion factor.

With the revelations of today are taken further to fruition, it could see the executives at EADS held criminally responsible for their actions, leading to prosecutions and likely further turbulence at the European manufacturing company.

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