On January 31, 2020, Airbus, Europe's largest aerospace multinational, reached a historic settlement with authorities in France, the United States, and the United Kingdom. To avoid prosecution over bribery in securing contracts with airline executives and government officials across 20 countries between 2004 and 2016, Airbus paid a staggering €3.6 billion—the largest global foreign bribery fine to date in Europe.
Impact on investors
For investors, this settlement highlights Airbus's failure to meet its legal disclosure obligations regarding its involvement in bribery. The company institutionalized corrupt practices, operated with inadequate governance, and concealed the significant financial and reputational risks it faced, including potential criminal investigations, fines, and other claims. By hiding these risks, Airbus artificially inflated its share prices, misleading the market.
Broader implications
This case raises critical questions about the disclosure obligations of listed companies, the role of executive and non-executive directors, and the systemic responsibility of external auditors. It is in light of these issues that BETTER FINANCE, the European federation of Investors and Financial users, along with several of its member organizations in Germany, France, and Spain, has expressed strong support for collective legal action.
Collective legal action
In response, Stichting Investor Loss Compensation (« SILC »), a Dutch foundation, initiated collective proceedings against Airbus, its executives, and auditors in late 2021. This action, representing investors who purchased Airbus shares between February 1, 2014, and March 16, 2020, is being pursued in The Hague, where Airbus is incorporated.
Recent court developments
On September 20, 2023, the District Court of The Hague recognized the Foundation's standing in most claims and deemed it sufficiently representative of the investors' interests. However, the court identified certain governance issues within the Foundation, leading to its temporary inadmissibility. The Foundation has since appealed this decision, with the appeal currently pending.
No upfront costs, supported by experts
This collective action is supported by experts from the Foundation, the Amsterdam-based law firm Birkway, and DRRT, an international law firm with extensive experience in global loss recovery. Funding for the appeal is provided by Therium, a leading third-party funder in Europe, ensuring there are no upfront costs for registered investors.
Call to action for Airbus shareholders
BETTER FINANCE once again urges all investors who bought or held Airbus shares between January 2014 and December 2020 on European stock exchanges to join the ongoing shareholder recovery action. Free and quick registration is available at: airbusclaim.com.