Boeing (BA.N) has prioritized profits over safety and misunderstood its commitment to building safe aircraft ahead of the Jan. 5 mid-air cabin panel explosion on an Alaska Airlines 737 MAX 9. A lawsuit has been filed by shareholders for allegedly giving
A proposed class action lawsuit filed Tuesday says Boeing has spent more than four years trying to improve safety after the crashes of two other MAX jets killed 346 people in October 2018 and March 2019. He assured investors that he is “focused on lasers” and will continue to focus on safety. We don’t sacrifice safety for profit.
Shareholders argued that Boeing’s statements were false and misleading because they covered up “poor quality control” on the assembly line and caused the company’s stock price to go up.
Boeing’s stock price fell 18.9% from January 5, 2024 to January 25, 2024, the day after the Federal Aviation Commission banned Boeing from expanding MAX production, citing safety concerns.
The decline wiped out more than $28 billion in market value.
A Boeing spokeswoman declined to comment Wednesday.
The lawsuit, filed in federal court in Alexandria, Virginia, targets shareholders between October 23, 2019 and January 24, 2024, and is led by Rhode Island Treasurer James Diossa.
Other defendants include Boeing Chief Executive Officer Dave Calhoun and his predecessor, Dennis Meilenburg, and Chief Financial Officer Brian West and his predecessor, Gregory Smith.
“This incident could lead to changes in Boeing’s practices to protect and keep passengers safe in the future,” Diossa said in a statement.
The Jan. 5 explosion prompted the FAA to temporarily ground 171 MAX 9 aircraft, resulting in thousands of canceled flights for Alaska Airlines Group (ALK.N) and United Airlines (UAL.O). did.
No one died on the Alaska flight, but some passengers sued Boeing and the airline.
Boeing said Wednesday it was unable to provide full-year financial targets due to uncertainties surrounding its aircraft operations.
Also reported better results than expected 4th quarter resultsThis includes a loss of $30 million, revenue of $22 billion, and cash flow of $3.38 billion.
The case is Rhode Island State Treasurer General v. Boeing Co., et al., U.S. District Court, Eastern District of Virginia, No. 24-00151.
