Boeing Faces Class Action Over MAX 9 Blowout

A federal judge has certified a class action lawsuit against Boeing, accusing the company of prioritizing profits over safety and overestimating its commitment to aircraft safety, particularly in light of a January 2024 incident involving an Alaskan Airlines 737 MAX 9. Judge Leonie Brinkema ruled that shareholders led by Rhode Island's state treasurer, who owned Boeing stock from January 7, 2021, to January 8, 2024, can sue collectively for damages. The shareholders had sought to begin the class period from 2019, but the judge aligned it with the resolution of a U.S. Department of Justice criminal case related to MAX safety. This class action allows for potentially larger recoveries at lower costs compared to individual lawsuits. Boeing's misleading statements are alleged to have inflated its stock prices following two deadly crashes in 2018 and 2019, which collectively resulted in 346 fatalities. This ruling is a significant step for shareholders seeking accountability from Boeing amid ongoing scrutiny of its safety practices.