Former EADS Top Manager Charged with Insider Trading

Charged with selling shares in Airbus before production delays on A380 were revealed

Jean-Paul Gut, former EADS general manager, was charged late June 17 with insider trading, the second top executive to face legal action for stock option dealings at the European aerospace giant, a judicial source said. Gut, 46, allegedly sold 1.7 million euros (US$2.6 million) in shares just months before the Airbus unit of the European Aeronautic Defence and Space company revealed production delays with its A380 superjumbo. Gut allegedly sold his shares in November 2005 and March 2006, bagging a total of 1.7 million euros, according to a report by the AMF financial markets regulator.

The former executive was released after posting bail of 400,000 euros (US$620,000) and ordered to report regularly to police. He was taken into custody on June 16 by the French financial crime unit looking into allegations that 17 executives and shareholders at EADS had privileged information when they traded their stock options before the delays became public knowledge in June 2006.

Gut, who left EADS in June of last year, was charged nearly three weeks after EADS former co-chief executive Noel Forgeard was indicted in the probe. Forgeard, who has denied any wrongdoing, has been released after posting bail of one million euros.

Copyright Agence France-Presse, 2008

Hide comments

Comments

  • Allowed HTML tags: <em> <strong> <blockquote> <br> <p>

Plain text

  • No HTML tags allowed.
  • Web page addresses and e-mail addresses turn into links automatically.
  • Lines and paragraphs break automatically.
Publish