US Stocks: Boeing shareholders can pursue class action over 737 MAX safety
Boeing shareholders can proceed with a class action lawsuit alleging the company concealed safety issues with the 737 MAX before fatal crashes.Summary
A federal judge has certified a shareholder class action against Boeing, allowing investors who owned stock between November 7, 2018, and October 18, 2019, to collectively sue the company. The lawsuit accuses Boeing of concealing safety deficiencies in its 737 MAX aircraft, contributing to two crashes in 2018 and 2019 that resulted in 346 deaths. Shareholders allege Boeing rushed the 737 MAX’s development, disregarded employee safety warnings, and misled the Federal Aviation Administration (FAA) to maintain market share against Airbus.
The class action follows a separate lawsuit concerning the January 2024 Alaska Airlines mid-air cabin panel blowout. Shareholders sought to extend the class period to December 16, 2019, citing Boeing’s temporary suspension of MAX production as evidence of an unrealistic timeline, but the judge limited the period to when concerns about the plane’s automated system surfaced in 2016.
Boeing previously agreed to pay over $2.5 billion to settle a Department of Justice criminal charge related to defrauding the FAA regarding the 737 MAX’s safety. Neither Boeing nor its legal representatives have yet commented on this latest development.
(Source：The Economic Times)