AMF’s claims against EADS centre on its Airbus A380.

Europe’s biggest aerospace company, EADS, has been accused of partaking in insider trading by France’s stock market regulator, the Telegraph.co.uk reports.

According to the newspaper, the Autorité des Marchés (AMF) said it has found evidence of both present and past executives undertaking in insider trading.

It also alleged that EADS had issued misleading statements in relation to production problems experienced at its Airbus subsidiary. This involved the delivery targets for its Airbus A380 in 2007, which were privately cut from 29 aircraft to 24. Later the same month, two EADS shareholders each sold their 7.5% stake in the company; resulting in criticism as when news of delays to the Airbus A380 broke, the EADS share price fell more than 26%.

EADS’ Chief Executive Louis Gallois has pledged to “vigorously defend” the company and its executives, however warned the matter “may have significant consequences on its image and reputation,” the Telegraph.co.uk said.

AMF is expected to begin informing EADS’s executives of possible sanctions and charges today (11 April). The results will be based on AMF’s 18-month enquiry into share sales conducted by EADS executives between November 2005 and April 2006. According to French newspaper, Les Echos, 17 past and present executives are involved in the allegations – the figure was originally expected to be 21.

AMF’s claims are a further blow to EADS and Airbus, which have in recent years suffered write-offs and difficult restructuring processes.

By Natasha Piscitelli