Case Background:
This is a federal securities fraud class action lawsuit on behalf of investors who purchased or otherwise acquired The Boeing Company (“Boeing”) (NYSE: BA) common stock between January 7, 2021 and January 8, 2024, inclusive (the “Class Period”).
On January 5, 2024, a Boeing 737 aircraft operated by Alaska Airlines experienced an in-flight departure of an in-cabin door plug, causing the cabin to become depressurized and forcing an emergency landing. On January 7, 2024, the Federal Aviation Administration (“FAA”) issued a grounding order, stating that "Boeing 737-9 aircraft will remain grounded until operators complete enhanced inspections which include both left and right cabin door exit plugs, door components, and fasteners," and that "[o]perators must also complete corrective action requirements based on findings from the inspections prior to bringing any aircraft back into service." On this news, Boeing's stock price fell $20.00 per share, or 8%, to close at $229.00 per share on January 8, 2024.
The complaint alleges that, throughout the Class Period, Defendants made materially false and/or misleading statements, as well as failed to disclose material facts about the company’s business, operations, and prospects. Specifically, Defendants misrepresented and/or failed to disclose that: (1) Boeing had been prioritizing its profits over safety, which led to poor quality control standards in the production of its commercial aircrafts such as the 737 MAX; (2) there was a heightened risk of manufacturing flaws that could render Boeing’s new airplanes unsafe; and (3) as a result of the foregoing, Defendants’ statements about the company’s business, operations, and prospects were materially false and/or misleading and/or lacked a reasonable basis at all relevant times.
Current Status of Case:
On March 7, 2025, the Court granted Lead Plaintiffs’ Motion for Class Certification. On May 2, 2025, Defendants appealed the District Court’s order granting the Motion for Class Certification, and the parties agreed to a partial stay to while awaiting the resolution of Defendants’ appeal. This action is ongoing.
If you wish to discuss this action or have any questions, please contact Kessler Topaz Meltzer & Check, LLP: Jon Naji, Esq. (484) 270-1453; toll-free at (844) 887-9500; or via e-mail at info@ktmc.com. If you would like additional information about the suit, please click on the link "Submit Your Information" above and fill out the form as promptly as possible.