© tom_schmucker-dreamstime.com Electronics Production | December 03, 2013
EADS caught on insider trading?
The group of people that will stand trial in a long-running insider trading case in Paris Fance, revolving EADS just got bigger. Two founding industrial shareholders of EADS will join the group of current and former managers on trial.
This group will be joined by French media group Lagardere and German carmaker Daimler, who will also stand trial. Airbus sales chief John Leahy, along with six current and former managers will stand trial over share trades that took place before the announcement of delays (in 2006), which let to somewhat of a nosedive of the EADS stock, reports Reuters citing lawyers involved in the case. The fact that the case is still being carried out in the courts – even after the parties have been cleared by stock market regulator's in 2009 – surprises both EADS and Lagardere. Leahy, along with others involved has strongly denied misconduct. If convicted, insider trading comes with a hefty fine in France – up to 10 times the amount gained from the transactions – and in the case of individuals, up to two years in prison, the report concludes.