Federal Contractor Misconduct Database (FCMD)
737 Max 8 Crashes Shareholder Litigation
Boeing shareholders filed a class-action lawsuit accusing the company of defrauding investors by concealing safety deficiencies in its 737 Max 8 commercial aircraft, which were taken out of service worldwide after deadly crashes in October 2018 and March 2019. The lawsuit alleges Boeing “put profitability and growth ahead of airplane safety and honesty” by selling the 737 Max without all of the necessary safety features, and that the statements it issued certifying the plane’s safety “were undermined by Boeing’s conflicts of interest in having been delegated authority by the Federal Aviation Administration to examine, test, and help certify its own planes.” The lawsuit seeks damages for investors who purchased Boeing stock between January 8, 2019 and March 21, 2019.
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