Boeing (BA) 737 MAX Case on Misleading

N.D. Illinois

Court

1:19-cv-02394

Case number

11/07/2018

Class period Start

12/16/2019

Class period End

The Boeing (BA) 737 MAX suffered a recurring failure in the Maneuvering Characteristics Augmentation System (MCAS), causing two fatal crashes, Lion Air Flight 610 and Ethiopian Airlines Flight 302, in which 346 people died.
According to the SEC, Boeing knew after the first crash that a flight control system posed a safety issue, but assured the public that the 737 MAX airplane was "as safe as any that has ever flown the skies."
In September 2022, $BA agreed to pay $200 million to settle civil charges by the SEC that it misled investors about its 737 MAX, which was grounded for 20 months after two fatal crashes.
Well-known captain “Sully” Sullenberger characterized the final version of MCAS as a “death trap.” In an October 13, 2019 letter to the editor of The New York Times Magazine, Sullenberger said that he is “one of the few who have flown a Boeing 737 MAX Level D full motion simulator” and that “the MCAS design should never have been approved, not by Boeing, and not by the FAA.”

Investors suspect that $BA and Accountables failed to disclose significant issues, including legal troubles, the grounding of the 737 MAX fleet, and problems with automated flight systems, leaving pilots unprepared.

Case Status

Attorney Investigation

Alleged Offence

Misleading Statements,

Failure to Disclose,

Omissions

Suspected Party

Directors,

Management,

Service Provider

Security Type

Stocks

Trade Direction

Long

Shock Event Date

12/16/2019

Filing date

04/08/2019

Judge

Hon. William F. Kuntz, II

Boeing (BA) 737 MAX Case on Misleading

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