NEW YORK, June 13, 2008 LAWFUEL – Legal Newswire — 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),
Madrid (Mercado Continuo:EAD) and/or Paris (Paris:EAD) 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”).
You can view a copy of the complaint online at
http://www.labaton.com/en/cases/Newly-Filed-Cases.cfm
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 EUR
500 million, without taking into account possible contract terminations
from existing customers.
In response to this announcement, shares of EADS fell EUR 6.69 per
share, or 26%, to close at EUR 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. citizens who purchased the publicly traded stock of
EADS on the Frankfurt (Frankfurt:EAD), Madrid (Mercado Continuo:EAD)
and/or Paris (Paris:EAD) 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. If you have any
questions about the lawsuit, please contact one of our representatives
or Andrei V. Rado, Esq. of Labaton Sucharow, at 800-321-0476.
