June 12, 2008
Labaton Sucharow LLP Announces Filing of Securities Class Action Lawsuit Against European Aeronautic Defence & Space Co.
Labaton Sucharow LLP filed a class action lawsuit on June 12, 2008 in the United States District Court for the Southern District of New York, on behalf of U.S. citizens who purchased the publicly traded stock of European Aeronautic Defence & Space Co. (“EADS” or the “Company”) on the Frankfurt (Frankfurt: EAD.F), Madrid (Mercado Continuo: EAD.MC) and/or Paris (Paris: EAD.PA) stock exchanges between January 17, 2005 and June 13, 2006, inclusive (the “Class Period”), seeking to pursue remedies under the Securities Exchange Act of 1934 (the “Exchange Act”).
The complaint alleges that, throughout the Class Period, EADS falsely assured the investing public that it would overcome the technical problems in the production of the Company’s Airbus A380 commercial jets (“A380”) and it would be able to meet its year-end delivery deadlines. Moreover, the Company issued numerous positive statements which described the Company’s increasing financial performance. According to the complaint, these statements were materially false and misleading because they failed to disclose and misrepresented the following adverse facts, among others: (i) that the Company was experiencing insurmountable delays in the manufacture of the A380 commercial jet; (ii) that the Company would be required to compensate its customers for these delays through discounts and certain customers would likely be canceling their entire orders; and (iii) that, as a result of the foregoing, the Company’s ability to receive new contract awards from commercial airliners and its ability to reap future revenues at the levels that it was projecting would be in serious doubt.
On June 13, 2006, the Company announced that its Airbus subsidiary was having production problems with the A380 commercial jet, which would cause a significant delay in delivery to its customers. The Company also issued a profit warning beyond 2006 which was attributable to these delays and announced that it anticipated annual shortfalls of €500 million, without taking into account possible contract terminations from existing customers.
In response to this announcement, shares of EADS fell €6.69 per share, or 26%, to close at €18.73 per share, on unusually heavy trading volume.
Plaintiff is represented by the law firm of Labaton Sucharow LLP, which has been representing plaintiffs in securities class actions for over 40 years.
If you are a U.S. citizen who purchased the publicly traded stock of EADS on the Frankfurt (Frankfurt: EAD.F), Madrid (Mercado Continuo: EAD.MC) and/or Paris (Paris: EAD.PA) stock exchanges between January 17, 2005 and June 13, 2006, you may file a motion, on or before August 11, 2008, to have the court appoint you as a lead plaintiff. A lead plaintiff is a court-appointed representative party that acts on behalf of absent class members. You do not need to be a lead plaintiff in order to share in any recovery that may result from this litigation. You can share in a recovery as an absent class member by filing out claim forms that will be made available at the appropriate time.
More information about Labaton Sucharow is available at www.labaton.com.