AeroThrust Corporation and its parent company, Windstar Capital have filed suit the federal court of the Southern District of Florida against Saab for fraud and related charges arising out of Windstar’s 2001 purchase of AeroThrust from Saab.
The suit alleges that Saab and its subsidiaries failed to disclose the loss of two key customers prior to the closing of the transaction, as was required under the purchase agreement. The loss of these customers – representing almost half of AeroThrust’s sales – is said to have greatly reduced the value of AeroThrust.
The suit also alleges that Saab and its senior executives concealed this information and ordered the swift closing of a transaction in order to get AeroThrust off Saab’s books at an inflated value, avoid a write-off for Swedish accounting purposes, and prevent the purchaser from learning of the deception.
The suit seeks $70 million in damages, among other penalties.