Case Background:
This is a federal securities fraud class action lawsuit on behalf of those who purchased or otherwise acquired The Boeing Company (“Boeing”) (NYSE: BA) securities between November 7, 2018 and December 16, 2019, inclusive (the “Class Period”).
Boeing is the worlds largest aerospace company and one of the leading manufacturers of commercial jetliners. In a push to stave off competition in the development of a fuel-efficient jet, Boeing rushed to get to market its “new” aircraft, which was an updated version of the decades-old Boeing 737, now called the 737 MAX. In its haste to develop and market the 737 MAX, Boeing deliberately concealed safety risks with the updated airliner from regulators.
On October 29, 2018, the 737 MAX being flown by Lion Air malfunctioned and crashed, killing 189 people. While Boeing repeatedly assured the public that the 737 MAX was safe to fly, internally, the company was quietly overhauling the airliner’s systems in an attempt to reduce the risk of another fatal malfunction. Despite Boeing’s reassurances to the public, on March 10, 2019 another 737 MAX, this time operated by Ethiopian Airlines, experienced malfunctions before crashing and killing 157 people.
Even as regulators and Congress investigated the crashes, Boeing continued to tout to the public that the 737 MAX would return to operation while concealing the full extent of the airliner’s safety issues. In December 2019, Boeing finally announced it would suspend production of the 737 MAX, causing the dramatic decline of Boeing’s stock price and significant losses and damages to shareholders.
The complaint alleges that, throughout the Class Period, Defendants misled investors about the financial prospects for its commercial airplanes by misstating and concealing information about safety problems with the 737 MAX in the wake of investigations after multiples crashes in 2018 and 2019.
Current Status of Case:
On September 30, 2024, the Court denied the vast majority of Defendants’ claims in their Motion to Dismiss. On February 7, 2025, Kessler Topaz Meltzer & Check, on behalf of the Lead Plaintiffs, filed the Motion for Class Certification, which is currently pending before the Court. This action is in the discovery phase and remains ongoing.
For more information on the case and Court’s Order granting in part and denying in part Defendants’ Motion to Dismiss, please visit our website at www.ktmc.com/featured-case/boeing-company.
If you wish to discuss this action or have any questions, please contact Kessler Topaz Meltzer & Check, LLP: Jon Naji, Esq. (484) 270-1453; toll-free at (844) 887-9500; or via e-mail at info@ktmc.com. If you would like additional information about the suit, please click on the link "Submit Your Information" above and fill out the form as promptly as possible.