Boeing hit with shareholder lawsuit
Since Boeing CEO Dennis Muilenburg acknowledged the cause of two recent deadly crashes points was issues with its software, the lawsuits have been piling up from grieving families.
Now a new lawsuit from shareholders could be even more damaging.
The proposed class action, filed in Chicago federal court, alleges Boeing effectively defrauded shareholders by failing to disclose safety problems with the 737 Max planes.
Boeing, CEO Dennis Muilenburg and CFO Gregory Smith are named as defendants.
It alleges they ‘put profitability and growth ahead of airplane safety and honesty.’
"Defendants misled investors about the sustainability of Boeing’s core operation – its Commercial Airplanes segment – by touting its growth prospects and profitability, raising guidance, and maintaining that the Boeing 737 Max was the safest airplane to fly the skies," the lawsuit states.
Boeing admitted a faulty sensor erroneoulsy triggered the anti-stall system, which pushed the planes into a dive, which in both crashes, pilots were unable to rectify.
A Lion Air Max 8 plane plunged into the sea in October and an Ethiopian Airlines plane crashed shortly after takeoff in March.
That led to the eventual worldwide grounding of the aircraft.
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Editor for TravelMole North America and Asia pacific regions. Ray is a highly experienced (15+ years) skilled journalist and editor predominantly in travel, hospitality and lifestyle working with a huge number of major market-leading brands. He has also cover in-depth news, interviews and features in general business, finance, tech and geopolitical issues for a select few major news outlets and publishers.
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