The Boeing Company

10 days left to seek lead plaintiff status

Case Summary

Company Name
The Boeing Company
Stock Symbol
Class Period
February 8, 2017 to November 13, 2018
Motion Deadline
January 27, 2019
Northern District of Illinois

The complaint charges Boeing and certain of its officers with violations of the Securities Exchange Act of 1934.  Boeing designs, develops, manufactures, sells, services and supports commercial jetliners, military aircraft, satellites, missile defense, human space flight and launch systems and services worldwide.

Boeing operates in four business segments: Commercial Airplanes; Defense, Space & Security; Global Services; and Boeing Capital.  The Commercial Airplanes segment is a leading producer of commercial aircraft and offers a family of commercial jetliners designed to meet a broad spectrum of airlines’ global passenger and cargo requirements, including the 737 narrow-body model and the 747, 767, 777 and 787 wide-body models.  The first 737 MAX aircraft was delivered to customers in May 2017.  The 737 MAX included a new automated stall-prevention system, designed to assist cockpit crews to avoid mistakenly raising a plane’s nose dangerously high.  Upon delivery, Boeing touted the 737 MAX as “chang[ing] the face of the single-aisle market.”

The complaint alleges that throughout the Class Period, defendants made materially false and misleading statements and/or failed to disclose adverse information regarding the Company’s business and operations.  Specifically, defendants failed to disclose that the Company’s new automated stall-prevention system in its 737 MAX aircraft was susceptible to deadly malfunctions and that Boeing had not maintained adequate internal controls to ensure the timely reporting and dissemination of such malfunctions.  As a result of this information being withheld from the market, the price of Boeing common stock was artificially inflated to more than $390 per share during the Class Period.

Then on October 29, 2018, a Boeing 737 aircraft operated by Indonesian airline Lion Air crashed shortly after takeoff, killing all passengers and crew.  On November 12, 2018, after the market closed, The Wall Street Journal published an article entitled “Boeing Withheld Information on 737 Model, According to Safety Experts and Others.”  Citing “safety experts involved in the investigation, as well as midlevel [Federal Aviation Administration] officials,” the article reported that Boeing “withheld information about potential hazards associated with a new flight-control feature suspected of playing a role in last month’s fatal Lion Air jet crash.”  Following this news, Boeing’s stock price fell $12.31 per share over the following two trading sessions, or roughly 3.4%, to close at $344.72 per share on November 14, 2018.  Over the 11 days following the publication of the Wall Street Journal article, the price of Boeing stock fell $44.71 per share, or roughly 12.5%, to close at $312.32 per share on November 23, 2018.

Class Period: February 8, 2017 - November 13, 2018
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