A U.S. district court judge has ruled that Boeing (BA.US) must face a shareholder class action lawsuit.
A U.S. federal judge ruled last Friday that Boeing (BA.US) must face a shareholder class action lawsuit that alleges the company inflated its commitment to manufacturing safe planes and deceived investors. Specifically, the judge, Leonie Brinkema, allowed shareholders led by the treasurer of Rhode Island to sue Boeing as a group for damages. These shareholders held Boeing stock from January 7, 2021, to January 8, 2024. In January 2024, an emergency door on a Boeing 737 MAX 9 aircraft operating for Alaska Airlines fell off, causing an in-flight emergency. This incident led to the U.S. Federal Aviation Administration restricting production of Boeing's most popular aircraft and reviewing the company's safety measures.The Boeing shareholders argued that misleading comments about aircraft safety made by the company after two fatal crashes of its 737 MAX planes in October 2018 and March 2019 had inflated its stock price. The shareholders had hoped the class action lawsuit would begin in 2019. However, Leonie Brinkema ruled that the class action lawsuit should begin after Boeing resolves a criminal case brought by the U.S. Department of Justice regarding the safety of the 737 MAX planes.
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