Airbus faces another multimillion-dollar lawsuit following its bribery scandal

The Foundation for Investor Loss Compensation on January 3, 2022, has filed a €300 million ($339 million) class-action lawsuit against Airbus at The Hague District Court in The Netherlands.

According to the details, a lawsuit has been filed in a Dutch court by “a hundred” institutional investors against Airbus, a European multinational aerospace corporation, saying they suffered at least 300 million euros in damages as a result of company misconduct.

Furthermore, the suit says investors suffered losses in millions as the company didn’t adequately disclose the incidents in financial statements between February 2014 and January 2020.

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The suit, which names KPMG and Ernst & Young as defendants, also said that the investors had to bear losses after buying shares in Airbus SE that were overpriced because the firm withheld information about corruption. However, the accounting organizations did not immediately respond to requests for comment.

A spokesperson for Airbus, which disclosed it was facing civil claims in the Netherlands in its third quarter 2021 earnings report, said the company would not comment on ongoing litigation. In its earnings report, Airbus said it believed it had “solid grounds to defend itself against the allegations.”

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“More than 100 institutional investors have now joined the Foundation, and the expectation is that that number will rise. “The damage suffered by current participants is around 300 million euros. As more participants join, this number will rise,” the filing said as reported by Reuters.

It is pertinent to mention here that Qatar Airways on Thursday also claimed compensation of $618 million from Airbus in damages over the grounding of its Airbus A350 fleet.

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Furthermore, the national flag carrier of Qatar also sought an additional $4 million compensation for every day that 21 of its A350 airplanes remain grounded by Qatar’s regulator over the skin damage, which includes erosion and gaps in a layer of lightning protection.

The suit follows a bribery scandal that saw Airbus sway authorities and other stakeholders to boost profits by over $1 billion. In January 2020, the planemaker agreed to pay around $4 billion in global penalties after challenges from prosecutors in France, the United States (US), and the United Kingdom (UK).

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