Airbus commercial director charged with insider trading

10th December 2010, Comments 0 comments

Airbus chief commercial officer John Leahy has been placed under formal judicial investigation for insider trading by French officials, sources close to the case told AFP on Friday.

The 60-year-old American was put under investigation by Judge Serge Tournaire in November, the first step towards a probable trial. If found guilty, he could two years in prison and a large fine.

Leahy, who is also the European planemaker's chief operating officer, sold 260,600 shares from stock options in Airbus parent firm EADS in November 2005 and March 2006, shortly before the company announced production delays.

French investigators suspect the sale was triggered by inside information and that Leahy therefore made an illegal profit of 3.12 million euros.

Former Airbus human resources director Erik Pillet has also been placed under judicial investigation, the same sources said.

© 2010 AFP

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