Another Lawsuit: Airbus Faces $339 Million Challenge In The Netherlands

Airbus is up against a €300 million ($339 million) class-action lawsuit in the Netherlands involving over a hundred institutional investors. Legal representatives of the group this week claimed that the aviation powerhouse failed to adequately disclose information about corruption at the firm.

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Airbus is facing another multimillion-dollar suit following its bribery scandal. Photo: Sumit Singh | Simple Flying

A global issue

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 company agreed to pay over $3.9 billion in global penalties after challenges from prosecutors in France, the United States, and the United Kingdom.

Now, Airbus faces another legal challenge, this time from a filing in the Netherlands. Investors claim that the business didn’t adequately disclose the incidents in financial statements between February 2014 and January 2020.

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The filing in the suit states that financial services behemoths KMPG and Ernst & Young are also defendants. Photo: Getty Images

Damages experienced

The filing was made by the Foundation for Investor Loss Compensation on January 3rd at The Hague District Court. The suit expresses that investors suffered losses after purchasing Airbus shares that were overpriced because the firm withheld information about corruption.

“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 states, as reported by Reuters.

In Airbus’ Q3 2021 earnings report, the manufacturer noted that it was facing civil claims in the Netherlands. It also highlighted that it had “solid grounds to defend itself against the allegations.”

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Airbus has been up against a series of legal proceedings from different organizations across the globe in recent years. Photo: Getty Images

 

Ongoing challenges

This week’s suit comes at a time when Qatar Airways is seeking over $600 million in damages from the manufacturer over the grounding of the Doha-based airline’s A350 aircraft. The flag carrier of Qatar last month announced that it had issued legal proceedings against Airbus in the Technology and Construction division of the High Court in London. The operator shared that the step was taken due to the failure to reach a solution regarding the “accelerated surface degradation condition” of the twinjet widebodies.

Additionally, last spring, SriLankan Airlines sued Airbus for $1 billion related to bribery claims surrounding an order for six A330s, four A350s, and four A350s that were to be leased.

Altogether, it’s been a notable few years for manufacturing powerhouses when it comes to legal proceedings. 2022 has also kicked off to a difficult start for Airbus amid two significant suits.

Simple Flying reached out to Airbus for comment on the lawsuit. A spokesperson for the airline shared that the company does not have any comment on ongoing litigation.

What are your thoughts about Airbus facing a $339 million class-action lawsuit in the Netherlands? What do you make of the overall situation? Let us know what you think of the company and the proceedings in the comment section.

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