The people at Boeing probably expected more bad news and today they got some when Bernstein Liebhard LLP, a New York-based law firm filed a class action suit in the Northern District of Illinois against Boeing. The suit was filed on behalf of people who purchased, “securities of Boeing, Inc. (“Boeing” or the “Company”) (NYSE: BA) during the period of January 8, 2019 through March 21, 2019.”
In light of the Lion Air accident last October and the Ethiopian Airlines crash last month, the complaint alleges that Boeing violated Sections 10(b) and 20(a) of the Securities Exchange Act of 1934. Plaintiffs seek to recover damages on behalf of all Class members who invested in Boeing securities during the class period.
Plaintiffs allege that Defendants made misrepresentations about the safety of the Company’s 737 Max airplanes during the class period. Specifically, Defendants allegedly concealed that the 737 Max airplanes lacked safety features which Boeing sold as “optional” add-ons; that most airlines did not purchase these safety “options”; and that the FAA handed oversight and certification of one of Boeing’s safety systems to Boeing, which had a clear conflict of interest as it was rushing the 737 Max to market.
No details were made available about how many people may be involved in this class action although information on the suit said plaintiffs, “must meet certain requirements set forth in the applicable law and file appropriate papers no later than June 10, 2019.”
