Insider trading charges hit Airbus
Noel Forgeard, former co-CEO of EADS, has been hit with insider trading charges. Apparently he was not alone, French authorities suspect about twenty more managers engaged in heavy insider trading between November of 2005 and March of 2006.
EADS is the parent company of Airbus, which has seen tough times for the past two years. In June 2006, the company announced delays in the release of A380 superjumbo jets. News hit shares of EADS pretty hard, their value plummeted by 26% percent in one day.
As co-CEO, it is reasonable to conclude that he would be aware of huge project delays before shareholders AND that once the bad news hit the public, a sell-off would ensue. The basics make this case look pretty bad for Forgeard but insider trading cases are not necessarily easy wins.
Is it realistic to expect people NOT to act in the face of impending financial loss?
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