Shareholder Files Lawsuit Against Boeing Over Allege Conceal Safety Information
A Boeing shareholder has filed a legal action accusing the company of covering up safety problems with its 737 Max, the commercial jet at the center of two crashes that killed 346 people.
Recall that several lawsuit have been brought by victims families that allege that the company did not inform pilots about the dangers of MCAS and that it was negligent.
In court documents filed Tuesday, the investor Richard Seeks claims the plane maker “effectively put profitability and growth ahead of airplane safety and honesty.”
The suit, which seeks damages for alleged securities fraud violations, said investors suffered economic losses because of Boeing’s omissions.
The lawsuit is one in a growing list of challenges for the Chicago-based company.
The company’s market value has plunged since an Ethiopian Airlines jet crashed shortly after takeoff on March 10, killing all 157 on board.
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The crash was the second in five months involving the same Boeing model.
On Oct. 29, Lion Air Flight 610 went down off Indonesia, killing all 189 passengers and crew members.
Investigators have zeroed in on a new automated anti-stall system known as MCAS as a possible cause of both incidents.
A preliminary report on the Ethiopian Airlines crash indicated that pilots struggled to control the MCAS before the crash.
Last week, Boeing Chief Executive, Dennis Muilenburg said it was “apparent” that MCAS had been activated in both crashes after sensors fed the system erroneous information.
The company recently said it would decrease production of the 737 Max from 52 aircraft per month to 42. And aviation officials worldwide have kept the aircraft grounded.
Culled From WashingtonPost
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