Motions to Serve as Lead Plaintiff Filed in Boeing Shareholder Suit

Two law firms filed motions in Alexandria, Virginia federal court to serve as the lead plaintiff in a securities lawsuit against the Boeing Company.

Boeing jet

ByZach Barreto

|

Published on May 21, 2024

Boeing jet

Background

On January 5, 2024, a Boeing 737 Max jet experienced a blowout of a mid-cabin panel shortly after takeoff. Following the incident, the Federal Aviation Administration (“FAA”) temporarily grounded all 737 Max jets for in-depth inspections. The FAA also investigated whether Boeing failed to ensure that its products conformed to its approved designs and FAA regulations.

The mandated inspections revealed loose bolts on door plugs in some Alaska Airlines and United Airlines 737 Max 9 jets. Subsequently, orders for Max 9 jets were delayed pending additional safety inspections. Additionally, the FAA barred Boeing from expanding production of Max 9 jets pending its formal investigation.

The Proposed Class Action

On January 30, 2024, shareholders filed a proposed class action in Virginia federal court against Boeing. The complaint alleged that Boeing, its President and CEO David Calhoun, former President and CEO Dennis Muilenburg, and Chief Financial Officer Brian West repeatedly made false and misleading statements about the integrity of the design, engineering, and certification process for the Boeing 737 Max line of jets.

More specifically, according to the plaintiffs, following the October 2018 and March 2019 crashes of two 737 Max jets, which resulted in the deaths of more than 300 people, Boeing assured its investors that it was focused on safety. However, as the plaintiffs argue, Boeing continually prioritized profit over safety, which resulted in the production of unsafe jets.

According to the complaint, following the January 5 accident, Boeing stock prices dropped by more than 18% and the company lost more than $28 billion of market value.

The Plaintiffs

The proposed class action, led by Rhode Island General Treasurer James Diossa on behalf of the Employees’ Retirement System of Rhode Island, covers Boeing Shareholders from October 23, 2019, to January 24, 2024, including New-York based retirement fund Local #817 IBT Pension Fund.

Employees’ Retirement System of Rhode Island is represented by Eric J. Belfi, Carol C. Villegas, and Francis P. McConville of Labaton, Keller, Sucharow, LLP, and Steven Toll and S. Douglas Bunch of Cohen, Milstein, Sellers, and Toll, PLLC.

Local #817 IBT Pension Fund is represented by Darren J. Robbins, Danielle S. Myers, Michael Albert, and Kenneth P. Dolitsky of Robbins, Geller, Rudman, & Dowd, LLP, and Craig C. Reilly of the Office of Craig C. Reilly.

On April 2, 2024, Labaton, Keller, Sucharow, LLP, and Robbins, Geller, Rudman, & Dowd, LLP, filed motions to be the lead plaintiff in the proposed class action lawsuit.

About the author

Zach Barreto

Zach Barreto

Zach Barreto is a distinguished professional in the legal industry, currently serving as the Senior Vice President of Research at the Expert Institute. With a deep understanding of a broad range of legal practice areas, Zach's expertise encompasses personal injury, medical malpractice, mass torts, defective products, and many other sectors. His skills are particularly evident in handling complex litigation matters, including high-profile cases like the Opioids litigation, NFL Concussion Litigation, California Wildfires, 3M earplugs, Elmiron, Transvaginal Mesh, NFL Concussion Litigation, Roundup, Camp Lejeune, Hernia Mesh, IVC filters, Paraquat, Paragard, Talcum Powder, Zantac, and many others.

Under his leadership, the Expert Institute’s research team has expanded impressively from a single member to a robust team of 100 professionals over the last decade. This growth reflects his ability to navigate the intricate and demanding landscape of legal research and expert recruitment effectively. Zach has been instrumental in working on nationally significant litigation matters, including cases involving pharmaceuticals, medical devices, toxic chemical exposure, and wrongful death, among others.

At the Expert Institute, Zach is responsible for managing all aspects of the research department and developing strategic institutional relationships. He plays a key role in equipping attorneys for success through expert consulting, case management, strategic research, and expert due diligence provided by the Institute’s cloud-based legal services platform, Expert iQ.

Educationally, Zach holds a Bachelor's degree in Political Science and European History from Vanderbilt University.

background image

Subscribe to our newsletter

Join our newsletter to stay up to date on legal news, insights and product updates from Expert Institute.