Boeing Facing Multiple Shareholder Lawsuits Over 737 Max

Boeing shareholders have begun to file lawsuits accusing the company of misleading and defrauding them by concealing material facts about the safety of the aircraft.

One proposed class action suit was filed Tuesday in Chicago federal court. The suit seeks damages for alleged securities fraud violations after Boeing’s stock price fell precipitously following the crash of an Ethiopian Airlines 737 Max 8.

A complaint from one suit charges that Boeing “effectively put profitability and growth ahead of airplane safety and honesty” while another “made misrepresentations about the safety of the Company’s 737 Max airplanes.”

The Chicago-based aircraft manufacturer is already facing suits from the families of victims in the two 737 Max 8 crashes as well as from participants in its employee retirement plans.

Meanwhile, Boeing reported an 18.5drop in aircraft deliveries in the first quarter on Tuesday and aircraft orders significantly fell during the same period.

Boeing offered two new safety features on the 737 Max that were optional in order to keep the base price down. Both aircraft involved in the crashes lacked those features.

(Photo: Accura Media Group)