EADS is being investigated for insider trading related to production of its Airbus A380.

Noel Forgeard, former Co-Chief Executive of EADS, Europe’s biggest aerospace firm, has today (30 May) been charged with insider trading, according to the telegraph.co.uk.

It is alleged that during his time at the company, he sold EADS shares prior to it being announced that the firm’s Airbus subsidiary was encountering delays to the production of its Airbus A380.

When news of the delays broke, 26% was wiped off the value of EADS shares, leading to widespread criticism resulting in Mr Forgeard’s resignation.

In April 2008, France’s stock market regulator, the Autorité des Marchés (AMF), revealed its 18-month trading investigation into the affair had provided evidence of both present and past EADS’ executives undertaking in insider trading.

As well as Mr Forgeard, a number of current and former EADS and Airbus executives are currently under investigation. They all deny any wrongdoing, however if they are found guilty they could face up to two years in jail and a fine worth ten times the share trading profits.

According to the Telegraph website, Mr Forgeard was questioned by France’s financial police for 35 hours, before being released on bail this morning.

By Natasha Piscitelli