Investigation Into Fishy Stock Sales Leads To Further Questions

EADS may have known the A380 was in trouble as far back as February this year according to French newspaper Le Monde. The information comes from an inquiry by AMF, France's market regulatory agency.

AMF is looking into rumors of insider trading. As Aero-News reported earlier this year, several EADS and Airbus higher-ups -- including Airbus' former CEO Noel Forgeard -- sold their company stock just before the official June announcement of new delays with the A380 program. The stock crashed the day following that announcement.

A few days later French police raided Airbus' company headquarters in Toulouse, France looking for evidence.

Fallout from the badly timed stock sales may have had much to do with Forgeard's decision to resign in early July.

Germany's industrial conglomerate DaimlerChrysler and France's defense giant Lagardere are also under the microscope as both moved to reduce their stakes in Airbus by 7.5-percent in April. In an ironic twist, DaimlerChrysler was one of the loudest voices clamoring for Forgeard's resignation following news of the police raids in Toulouse.

Le Monde says AMF's investigation has now revealed 800 EADS employees may have been involved in the stock sell off. Among the employees under scrutiny are Fabrice Bregier, currently the managing director at Airbus, and Francis Auque, head of EADS Space.

Lawsuits filed on behalf of several investor groups claim EADS' directors were warned of likely A380 delays at a board meeting in early March.

FMI: www.amf-france.org