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BAE faces lawsuit on Saudi sales
BAE Systems has just won a new deal from Saudi Arabia
A BAE shareholder has filed a lawsuit against the UK defence group's board, seeking damages over the firm's past arms deals with Saudi Arabia.
The US lawsuit, brought by a pension fund, alleges BAE bosses failed to carry out their duties when they agreed to sell jets to Saudi Arabia in 1985.
The controversial deal involved illegal bribes, kickbacks and other payments being made, the suit alleges.
A BAE spokesman said the company would "vigorously" defend the case.
Ongoing US probe
The allegations of corruption over BAE's past sales to Saudi Arabia centre on the £43m Al-Yamamah deal in 1985, which provided Hawk and Tornado jets plus other military equipment.
Britain's Serious Fraud Office had been investigating the matter, but the UK government halted the probe in December saying the investigation was compromising the UK's national interests.
However, the matter is still being investigated by the US Department of Justice, which started its own inquiries in June.
UK government sources told the BBC on Thursday that the Home Office has now received a request for mutual legal assistance from the US investigators.
However, a Home Office spokesman said the department will not confirm or deny whether this request had been received.
The lawsuit by BAE shareholder, The City of Harper Woods Employees' Retirement System, accuses BAE of giving more than $2bn of illegal bribes to Saudi Prince Bandar bin Sultan.
Such allegations were aired by the BBC in June, but Mr Bandar has "categorically" denied receiving any improper payments and BAE says it acted lawfully at all times.
The lawsuit names both current BAE chief executive Mike Turner and Prince Bandar. Law firm Coughlin Stoia Geller Rudman & Robbins said other shareholder were expected to join the suit, turning it into a class action. Earlier this month the UK Ministry of Defence announced that Saudi Arabia is to buy 72 Eurofigher Typhoon jets from BAE Systems, in a deal worth up to £20bn.
http://news.bbc.co.uk/2/hi/business/7005074.stm
BAE Systems has just won a new deal from Saudi Arabia
A BAE shareholder has filed a lawsuit against the UK defence group's board, seeking damages over the firm's past arms deals with Saudi Arabia.
The US lawsuit, brought by a pension fund, alleges BAE bosses failed to carry out their duties when they agreed to sell jets to Saudi Arabia in 1985.
The controversial deal involved illegal bribes, kickbacks and other payments being made, the suit alleges.
A BAE spokesman said the company would "vigorously" defend the case.
Ongoing US probe
The allegations of corruption over BAE's past sales to Saudi Arabia centre on the £43m Al-Yamamah deal in 1985, which provided Hawk and Tornado jets plus other military equipment.
Britain's Serious Fraud Office had been investigating the matter, but the UK government halted the probe in December saying the investigation was compromising the UK's national interests.
However, the matter is still being investigated by the US Department of Justice, which started its own inquiries in June.
UK government sources told the BBC on Thursday that the Home Office has now received a request for mutual legal assistance from the US investigators.
However, a Home Office spokesman said the department will not confirm or deny whether this request had been received.
The lawsuit by BAE shareholder, The City of Harper Woods Employees' Retirement System, accuses BAE of giving more than $2bn of illegal bribes to Saudi Prince Bandar bin Sultan.
Such allegations were aired by the BBC in June, but Mr Bandar has "categorically" denied receiving any improper payments and BAE says it acted lawfully at all times.
The lawsuit names both current BAE chief executive Mike Turner and Prince Bandar. Law firm Coughlin Stoia Geller Rudman & Robbins said other shareholder were expected to join the suit, turning it into a class action. Earlier this month the UK Ministry of Defence announced that Saudi Arabia is to buy 72 Eurofigher Typhoon jets from BAE Systems, in a deal worth up to £20bn.
http://news.bbc.co.uk/2/hi/business/7005074.stm