The news for Boeing seems to keep getting worse with every passing day.
A lawsuit against the aerospace giant has been launched over allegations of securities fraud. The class action suit was filed in a federal court in Chicago on Tuesday. The suit seeks damages for alleged securities fraud, as they claim that Boeing “effectively put profitability and growth ahead of airplane safety and honesty.” The allegations imply that Boeing rushed the 737 MAX project in order to keep up with Airbus SE, which caused the manufacturer to leave out “optional” features which were created to avoid crashes like the two that have unfortunately taken place. It is thus believed by the accusers that Boeing failed to reveal important information until after the more recent March 10 crash.
Shareholders often file lawsuits against companies they have bought into. Securities fraud occurs when a company conceals negative information in order to keep their shares higher in value. Boeing is currently going through several lawsuits, and the company’s shareholders have just joined them.