Shareholder Sues BAE Over Alleged Saudi Bribes

Law360, New York (September 20, 2007, 12:00 AM EDT) -- The board of directors of defense contractor BAE Systems has been hit with a lawsuit for allegedly paying more than $2 billion in bribes to a Saudi prince as part of a 1985 contract to provide Saudi Arabia with military equipment.

Pension fund City of Harper Woods' Employee Retirement System filed the derivative shareholder suit last Wednesday. Prince Bandar bin Sultan was also named as a defendant.

BAE, which is suspected of having made the illegal payments through an American bank, came under investigation by the...
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