Boeing shareholders can pursue class action over 737 MAX safety
A judge allowed Boeing shareholders to proceed with a class action lawsuit alleging the company concealed safety issues with the 737 MAX.Summary
A federal judge has certified a shareholder class action lawsuit against Boeing, accusing the company of concealing safety deficiencies in its 737 MAX aircraft prior to the two fatal crashes in 2018 and 2019 that resulted in 346 deaths. Judge Franklin Valderrama ruled that shareholders who owned Boeing stock between November 7, 2018, and October 18, 2019, could sue collectively, establishing a common method for calculating damages. The lawsuit alleges that Boeing rushed the development of the 737 MAX, disregarded employee safety warnings, and misled the Federal Aviation Administration (FAA) to maintain market share against Airbus.
Shareholders initiated the suit following the Lion Air crash in October 2018 (189 fatalities) and the Ethiopian Airlines crash in March 2019 (157 fatalities). They had sought a longer class period, ending on December 16, 2019, when Boeing temporarily halted MAX production, but the judge limited the period to October 18, 2019, coinciding with the revelation of concerns expressed in 2016 by Boeing’s chief technical pilot, Mark Forkner, regarding an automated system on the plane.
Boeing previously agreed to pay over US$2.5 billion to settle a U.S. Department of Justice criminal charge related to conspiring to defraud the FAA regarding the 737 MAX’s safety. The company and its legal representatives did not immediately respond to requests for comment on the current class action.
(Source：Bnn Bloomberg)