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BAE faces lawsuit on Saudi sales | BAE faces lawsuit on Saudi sales |
(about 8 hours later) | |
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. | 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 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. | 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. | A BAE spokesman said the company would "vigorously" defend the case. |
Ongoing US probe | 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. | 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. | 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. | 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. | 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. | 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. | 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. | 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. | 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. |
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