Dutch Court Rejects Probe of EADS Over A380 Delays
An Amsterdam court rejected a request by European Aeronautic Defence & Space Co. (EAD) investors to order a probe centered on EADS disclosures of production delays for the Airbus A380, the world’s biggest passenger plane.
Though EADS issued expectations that, with hindsight, weren’t fulfilled or made statements that proved to be incorrect, it doesn’t mean there is sufficient reason to doubt proper management, Presiding Judge Peter Ingelse said at the hearing at the Amsterdam Court of Appeal’s Enterprise Chamber today.
Disclosure of the delays sent EADS down a record 26 percent on June 14, 2006. Shareholders including Deutsche Bank AG (DBK)’s DWS Investment SA, UBS Fund Management AG, Irish Life Investment and Deka Investment GmbH asked the Dutch court to order a probe into the company’s management and events related to the production problems.
Seventeen current and former EADS executives were cleared in a separate probe by France’s market regulator in December of trading on inside information regarding the postponements.
The Autorite des Marches Financiers also reviewed whether EADS made proper disclosures to investors. The AMF said Dec. 18 that its Sanctions Commission, which makes the final decision on penalties, had found no evidence of market violations and absolved the company and shareholders Daimler AG and Lagardere SCA. (MMB)
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