Federman & Sherwood Announces the Filing of a Securities Class Action Lawsuit against The Boeing Company
To join this class action, please complete the following Investor Certification.
Oklahoma City, OK (May 9, 2019) – On April 9, 2019, a securities class action lawsuit was filed in the United States District Court for the Northern District of Illinois against The Boeing Company (NYSE: BA). The complaint alleges violations of federal securities laws, Sections 10(b) and 20(a) of the Securities Exchange Act of 1934 and Rule 10b-5, including allegations of issuing a series of material or false misrepresentations to the market which had the effect of artificially inflating the market price during the Class Period, which is January 8, 2019 through May 5, 2019. More specifically, the complaint alleges that Boeing falsely claimed in its February 2019 10-K that it is “committed to being the leader in commercial aviation by offering airplanes and services that deliver superior design, efficiency and value to customers around the world.” Boeing likewise issued press releases during the Class Period about the sale of its 737 MAX planes that failed to disclose that safety features did not come with the plane unless bought as “extra” features.
On October 29, 2018, a Boeing 737 Max 8 jet operated by the Indonesian airline Lion Air crashed shortly after takeoff, killing all passengers and crew. On November 12, 2018, post-market, the WallStreet 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” and reporting 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[.]”
On March 10, 2019, 157 people perished after an Ethiopian Airlines-operated Boeing 737 Max 8 jet crashed in Addis Ababa, Ethiopia shortly after takeoff. In the wake of the crash, regulators in China and several other countries grounded all Boeing 737 Max 8 jets. On March 11, 2019, Boeing’s stock price fell $22.65, or over 5%, to close at $399.89. Thereafter, on March 13, 2019, the Federal Aviation Administration (“FAA”) ordered all Boeing 737 Max 8 and Max 9 jets to be temporarily grounded in the United States.
On March 17, 2019, The Seattle Times released an investigative report that the original safety analysis for the Boeing 747 MAX that Boeing sent to the FAA had several crucial flaws and that the FAA had given Boeing increasing authority to certify the safety of its own airplanes. On March 18, 2019, Bloomberg reported that United States federal authorities had begun exploring a criminal investigation into how Boeing’s 737 MAX was certified to fly passengers before the Ethiopian crash. Following these press reports, the price of Boeing stock fell $6.71 per share on March 18, 2019.
On March 21, 2019, The New York Times reported in an article entitled, “Doomed Boeing Jets Lacked 2 Safety Features That Company Sold Only as Extras,” that Boeing hid from investors, pilots, and passengers, the fact that the software system that could have fixed the issue that led to the crashes was not a standard feature but that airlines had to pay more for this “extra” or “optional feature” as a way for Boeing to decrease the purchase price of the airplane. Following this news, of the price of Boeing stock fell $10.53 per share, or 3%, to close at $362.17 on March 22, 2019.
Plaintiff seeks to recover damages on behalf of all The Boeing Company shareholders who purchased common stock during the Class Period and are therefore a member of the Class as described above. You may move the Court no later than Monday, June 10, 2019 to serve as a lead plaintiff for the entire Class. However, in order to do so, you must meet certain legal requirements pursuant to the Private Securities Litigation Reform Act of 1995.
If you wish to discuss this action, obtain further information and participate in this or any other securities litigation, or should you have any questions or concerns regarding this notice or preservation of your rights, please contact: Robin Hester at firstname.lastname@example.org