Machinery industry German aviation company accuses Ruag of accounting fraud

The German company General Atomics Europe (GAE) has accused the Swiss company Ruag International of accounting fraud. The German company is demanding compensation of more than 40 million euros. A corresponding lawsuit was filed with the Munich II Regional Court in August.

According to the plaintiff, Ruag allegedly overstated the assets of one of its subsidiaries in its official accounts. This was stated in an investigation published by Tamedia on Monday. As a result, GAE 2021 overpaid 40 million euros for the subsidiary, Ruag Aerospace Services, according to the allegation.

The basis for the purchase was a falsified annual report. The decisive annual financial statements for 2019 were only submitted two weeks before the contract was signed, although they should have been published three months in advance by law, the report continued. GAE claims that two dozen balance sheet items were grossly manipulated. When asked by the Keystone-SDA news agency, Ruag denied the allegations.

SDA