Boeing Faces Lawsuit For Securities Fraud

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Just one month ago, on March 10, 2019, a flight conducted by Ethiopian Airlines using the new Boeing 737 MAX airliner crashed to the ground just a few minutes after liftoff, killing a total of 157 people who are on board Ethiopian Airlines Flight 302.

The accident was the second in the past half-year. Lion Air Flight 610, also utilizing the Boeing 737 MAX, plunged into the Indian Ocean less than 15 minutes after taking off from the capital of Indonesia, Jakarta. Lion Air Flight 610 resulted in the death of all 189 people who were on board at the time.

Countries around the world soon after began banning flights using the Boeing 737 MAX. Within a few weeks, no major country allowed flights using the Boeing 737 MAX airliner.

Just yesterday, on Tuesday, April 9, 2019, a lawsuit seeking damages from Boeing for supposed violations of securities fraud laws was filed in United States federal court in Chicago, Illinois. The lawsuit, titled Seeks v Boeing Co et al, U.S. District Court, Northern District of Illinois, No. 19-02394, is seeking out a total of $34 billion from the company.

The complaint alleges that Boeing failed to prioritize airliner safety by putting first the company’s desire for growth and profit.

Boeing allegedly made these shortcuts to better compete with the closest model to the Boeing 737 MAX, the Airbus SE, by failing to include several features that almost certainly would have kept the crashes suffered by Lion Air in Indonesia and Ethiopian Airlines in Ethiopia from taking places.

The lead plaintiff of the lawsuit is Richard Seeks, who bought exactly 300 shares just longer than a month ago. In the past couple of weeks, Seeks sold them off for a big-time loss.

Seeks v Boeing Co et al will hope to be successful in its pursuits to claim damages from Boeing for people who lost money on shares purchased between Jan. 8 and March 21.

Further, airline companies around the globe have virtually stopped ordering Boeing 737 MAX airliners from the company. Although countless thousands of orders have already been placed over the past eight years – airliners take many years to actually be produced – they will unarguably take a major tank as a result of the failure of Boeing to equip its newest airliners with necessary security features. Official reports from the investigations of both of the crashes haven’t been put out yet.

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