Elevate your local knowledge

Sign up for the iNFOnews newsletter today!

Select Region

Selecting your primary region ensures you get the stories that matter to you first.

Boeing shareholder alleges investors were misled on Max jet

CP567487765
A Boeing 737 MAX 8 airplane being built for India-based Jet Airways, flies after taking off on a test flight, Wednesday, April 10, 2019, at Boeing Field in Seattle. Flight test and other non-passenger-bearing flights of the plane continue in the Seattle area where the plane is manufactured, as a world-wide grounding the the 737 MAX 8 continues, following fatal crashes of MAX 8\'s operated by Ethiopian Airlines and Lion Air. (AP Photo/Ted S. Warren)

NEW YORK – A Boeing shareholder is suing the company for allegedly hiding problems with its 737 Max jet to push its shares higher.

Shareholder Richard Seeks argues that Boeing should have told investors about safety problems with its bestselling plane after a fatal crash in October. Instead, it pushed the stock up to artificial highs by speaking optimistically about future sales before a second fatal crash in March sent shares tumbling, he says.

The federal suit, which also names Boeing CEO Dennis Muilenburg and the chief financial officer, Gregory Smith, as defendants, seeks class action status for Boeing shareholders who bought stock between January 8 and March 21.

Boeing did not immediately respond to a request for comment.

News from © iNFOnews.ca, . All rights reserved.
This material may not be published, broadcast, rewritten or redistributed.

Join the Conversation!

Want to share your thoughts, add context, or connect with others in your community?

Create a free account

iNFOTEL

Related Articles