Boeing Sued By Shareholders Over Quality Problems

Boeing is being sued by shareholders following the door blowout incident and subsequent quality issues being identified on their aircraft.

According to new court filings, Boeing shareholders launched legal action towards the plane maker at the beginning of February.

This legal action comes as these shareholders believe that Boeing misled them over the safety lapses that would be identified when a door blow occurred on an Alaska Airlines 737-9.

Another Round Of Legal Action

The lawsuit is directed towards “THE BOEING COMPANY, DAVID L. CALHOUN, DENNIS A. MUILENBURG, BRIAN J. WEST, and GREGORY D. SMITH.”

Ultimately, for Boeing, this isn’t the first bit of legal action that has come their way following the door blowout incident with passengers aboard the Alaska Airlines flight launching action for trauma.

In this claim, one of the parts highlighted by the shareholders is that towards the end of 2019, the company said it was beginning to take strides in improving quality and turning the corner on the business.

However, this ultimately would not take place as, in early 2024, those quality concerns that Boeing claimed they were fixing came undone once more, per shareholders. This legal action also indicates that quality is only being focussed on once more because of a near disaster.

This indicates that what had been occurring on the floor and higher up has been unacceptable and has led to the revelation of these quality issues.

In Point 8 of the ‘Summary of The action,’ it reads “Unbeknownst to investors, statements such as those above were false and misleading because Boeing failed to disclose that it 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, resulting in a heightened risk of manufacturing flaws which could render the Company’s new airplanes unsafe. This very risk had materialized during the Class Period. These false and/or misleading statements caused Boeing stock to trade at artificially inflated prices during the Class Period.”

Boeing To Be Investigated

Following the door blowout incident and further loose bolts being identified, Boeing saw the FAA launch an investigation into key practices at the plane maker and how the released aircraft are produced.

For the latest round of legal action, one of the biggest concerns relates to how these shareholders felt led on by Boeing, who were, per their executives, turning a corner.

Defendants promised that Boeing would be laserfocused on safety and touted the efficacy of its renewed manufacturing, production, and oversight efforts as well as operational changes it had made to assure the adequacy of its quality control standards.

Legal Action

Comments Being Highlighted

The legal action has also explored several comments over the years that have painted an inaccurate picture of the inner workings at the manufacturer, portrayed by executives.

I think everybody here is aligned on the objective of a safe aviation system for our country. And I know that’s the interest of the committees. That is clearly the interest of our company. And I look forward to participating in those hearings and talk about what we’re doing, all again with a focus on safety. And that’s our culture, that’s what our company is about.

Legal Action

We’ll stay true to our enduring values of safety, quality and integrity while driving operational excellence across the enterprise. We will never waver in our commitment, the importance of our work demands it. Nothing is more important to us than the safety of our customers and the flying public. The safe return to service of the 737 MAX is our company’s top priority

Legal Action
Daniel Fowkes
05 Feb 2024
· Aircraft 

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