Boeing shareholders file lawsuit over 737 MAX crashes
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.
TravelMole Editorial Team
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.
Vegas’s Billion-Dollar Secrets – What They Don’t Want Tourists to Know
Visit Florida’s New CEO Bryan Griffin Shares His Vision for State Tourism with Graham
Chicago’s Tourism Renaissance: Graham Interviews Kristin Reynolds of Choose Chicago
Graham Talks with Cassandra McCauley of MMGY NextFactor About the Latest Industry Research
Destination International’s Andreas Weissenborn: Research, Advocacy, and Destination Impact
Graham and Don Welsh Discuss the Success of Destinations International’s Annual Conference
Graham and CEO Andre Kiwitz on Ventura Travel’s UK Move and Recruitment for the Role
Brett Laiken and Graham Discuss Florida’s Tourism Momentum and Global Appeal
Graham and Elliot Ferguson on Positioning DC as a Cultural and Inclusive Global Destination
Graham Talks to Fraser Last About His England-to-Ireland Trek for Mental Health Awareness
Kathy Nelson Tells Graham About the Honour of Hosting the World Cup and Kansas City’s Future
Graham McKenzie on Sir Richie Richardson’s Dual Passion for Golf and His Homeland, Antigua
ADS PRO 
Phocuswright reveals the world's largest travel markets in volume in 2025
Higher departure tax and visa cost, e-arrival card: Japan unleashes the fiscal weapon against tourists
Cyclone in Sri Lanka had limited effect on tourism in contrary to media reports
Singapore to forbid entry to undesirable travelers with new no-boarding directive
Euromonitor International unveils world’s top 100 city destinations for 2025