LONDON, July 4 British aero engine maker
Rolls-Royce Holdings Plc said it was confident a lawsuit
brought against it by two former employees would be found to be
Two ex Rolls-Royce employees in the United States are
challenging a court order that prevents them from releasing
information they say reveals potentially serious defects in its
manufacturing processes, according to a report in the Financial
The report said the two former quality-control officers at
Rolls-Royce Corp, part of Rolls' U.S. unit, allege the company
hid internal records of defects in engines it sold to commercial
and military clients.
"This lawsuit is entirely without merit," a Rolls-Royce
spokesman said, adding that a U.S. district Judge William T.
Lawrence had already thrown out two of the four claims before
the "discovery" phase of the litigation had been entered.
"Judge Lawrence did not find that Rolls-Royce engaged in any
wrongdoing, failed to follow its quality system, concealed
anything from the U.S. government or even that a jury is
entitled to hear the allegations," the Rolls spokesman added.
"Rolls-Royce categorically rejects the other claims and will
defend itself vigorously. Any and all facts of the case will be
presented in court, where we are confident it will be found the
lawsuit is without merit."
Last month an Australian safety regulator reported that
Rolls had failed to identify a defect that caused one of its
engines to explode on a Qantas Airways Ltd flight over
Indonesia three years ago.
In its final report on the incident, the Australian Safety
Transport Bureau (ASTB) said the company missed multiple
opportunities to detect a faulty component.
Rolls is also engaged in a review of compliance procedures
after Britain's Serious Fraud Office (SFO) launched an
investigation into claims that company representatives paid
bribes to win airline engine contracts in Asia.
Late last year Rolls said it could face prosecution after
the SFO ordered it to conduct an internal inquiry into possible
bribery and corruption by intermediaries in China, Indonesia and
other overseas markets.