Triumph Group Hit With Fraud Lawsuit Over Qarbon Aerospace Deal

A Qarbon Aerospace Inc. affiliate sued Triumph Group Inc. for fraud, saying the aerospace manufacturer cooked the books before selling one of its divisions in 2021 to hide a huge money-losing agreement with Boeing Co.

Triumph executives orchestrated the sale of a parts-making unit specifically to offload the contract building components for a US Air Force jet made by Boeing, the T-7A Red Hawk, which was a “staggering” financial disaster, according to the lawsuit made public Monday. They then used accounting tricks to paint “a fictitious picture” that duped Arlington Capital Partners into the transaction, the suit says.

“The depths ...