Boeing (BA.N) has been sued by shareholders who said the company prioritized profits over safety and misled them about its commitment to making safe planes, before the Jan. 5 mid-air cockpit panel explosion in a Alaskan Airlines 737 MAX 9.
According to a proposed class action lawsuit filed Tuesday, Boeing spent more than four years after the crashes of two other MAX planes in October 2018 and March 2019, which killed 346 people, assuring investors that it was “focused on security” and that Do not sacrifice security for profit.
Shareholders said Boeing’s statements were false and misleading because they obscured “poor quality control” on its assembly line and caused its stock price to inflate.
Boeing’s stock price fell 18.9% from January 5 to 25, 2024, the day after the Federal Aviation Commission banned Boeing from expanding production of the MAX over safety concerns.
The crash wiped out more than $28 billion in market value.
A Boeing spokesman declined to comment Wednesday.
The lawsuit filed in federal court in Alexandria, Virginia, covers shareholders from October 23, 2019 to January 24, 2024, and is led by Rhode Island General Treasurer James Diossa.
Other defendants include Boeing CEO Dave Calhoun and his predecessor, Dennis Muilenburg, and CFO Brian West and his predecessor, Gregory Smith.
Boeing has been sued by shareholders who said the company prioritized profits over safety and misled them about its commitment to making safe planes before the cockpit panel exploded in mid-air on Jan. 5. REUTERS According to a proposed class action lawsuit filed Tuesday, Boeing spent more than four years following the crashes of two other MAX planes in October 2018 and March 2019, which killed 346 people. REUTERS
“This case has the potential to effect changes in Boeing’s practices to protect passengers and ensure their safety in the future,” Diossa said in a statement.
The Jan. 5 explosion caused the FAA to temporarily ground 171 MAX 9 planes, leading to thousands of flight cancellations at Alaska Air Group (ALK.N) and United Airlines (UAL.O).
No one died on the Alaska flight, but some passengers sued Boeing and the airline.
Shareholders said Boeing’s statements were false and misleading because they obscured “poor quality control” on its assembly line and caused its stock price to inflate. REUTERS Boeing’s stock price fell 18.9% from January 5 to 25, 2024, the day after the Federal Aviation Commission banned Boeing from expanding production of the MAX over safety concerns. REUTERS
On Wednesday, Boeing said it could not provide full-year financial targets due to uncertainty about its planes.
It also reported better-than-expected fourth-quarter results, which included a $30 million loss, $22 billion in revenue and $3.38 billion in cash flow.
The case is Office of the Treasurer General of the State of Rhode Island v. Boeing Co et al, United States District Court, Eastern District of Virginia, No. 24-00151.
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Source: vtt.edu.vn