FACC sues former CEO, CFO for $11 mln over cyber fraud failings
10/12/2018 13:27
VIENNA, Dec 10 (Reuters) - Chinese-owned plane parts maker
FACC FACC.VI is suing its former chief executive and ex
finance chief who it alleges failed to do enough to protect it
from a cyber fraud costing tens of millions of euros, an
Austrian court said.
The company was tricked into transferring some 54 million
euros ($61 million) to foreign accounts in a so-called
"fake-president fraud", a statement outlining the lawsuit issued
by a court in Ried in Innkreis, where FACC is based, said on
Monday.
The company made the fraud public in January 2016 and fired
its finance chief Minfen Gu the following month. It then
dismissed Chief Executive Walter Stephan in May of that year.
Both individuals deny the allegations, the court said.
"The plaintiffs ... are seeking damages of 10 million euros
($11 million)," the court said in its statement detailing the
lawsuit filed by FACC and one or more of its units.
They allege Minfen and Walter failed to set up adequate
internal controls and to meet their obligations of collegial
cooperation and supervision, the court statement said.
A spokesman for FACC declined to comment as the case was
ongoing. It is due to be heard on Dec. 17.
($1 = 0.8790 euros)
(Reporting by Francois Murphy
Editing by Alexander Smith)
((francois.murphy@thomsonreuters.com; +43 1 531 12 254;))