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US appeals court dismisses class action Boeing arising from MAX 9 explosion

A federal appeals court decertified on Monday a class action filed by shareholders accusing Boeing of prioritizing profits over safety, and exaggerating its commitment to aircraft safety. This was prior to the mid-air panel blowout that occurred on a Alaska Airlines 737 MAX in January 2024. The 4th U.S. The 4th U.S. Circuit Court of Appeals ruled that shareholders?led?by Rhode Island's State Treasurer failed to provide?an adequate methodology for calculating damages on a?classwide?basis. The lawyers for the shareholders didn't?immediately? respond to requests?for comments. Boeing's lawyers also did not respond immediately to similar inquiries. Class actions allow for greater recovery at lower costs than individual lawsuits. Boeing shareholders accused the Arlington, Virginia-based firm of inflating the stock price of its company by making misleading statements after the two MAX crashes in October 2018 and March 2019 that killed 346 people. U.S. district judge Leonie Brinkema of Alexandria,?Virginia ruled that in March 2025,?shareholders in Alexandria who purchased Boeing stock between January 7,?2021 and January?8,?2024, could sue?as a collective for?damages. The appeals court sent the case back to her.

(source: Reuters)