Boeing faces shareholder lawsuit over 737-Max crashes
Nathan BomeyBoeing is facing a shareholder lawsuit over accusations that it "put profitability and growth ahead of airplane safety and honesty," leading to two crashes of the company's 737-Max airplanes.
Lead plaintiff Richard Seeks filed the lawsuit Tuesday in a Chicago federal court seeking class-action status against Boeing after the crashes of Lion Air Flight 610 on Oct. 29 and Ethiopian Airlines Flight 302 on March 10.
The crashes killed nearly 350 people and triggered the worldwide grounding of 737-Max planes until Boeing can deliver a fix.
The lawsuit claims Boeing concealed the risks of the 737-Max design, including "the danger of the increased pitchup tendency of the aircraft."
Boeing shares were flat in pre-market trading at $369 on Wednesday.
Boeing declined to comment on the lawsuit.
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CEO Dennis Muilenburg apologized last week for the crashes, saying that a preliminary investigation made it "apparent that in both flights" a maneuvering system "activated in response to erroneous angle of attack information."
"We at Boeing are sorry for the lives lost in the recent 737-Max accidents," Muilenburg said in a statement at the time. "These tragedies continue to weigh heavily on our hearts and minds."
Shareholder lawsuits are common in major corporate crises, as stockholders seek compensation from corporations over allegations of mismanagement leading to stock losses.
Boeing announced on Friday that it would slow production of the 737-Max.
Follow USA TODAY reporter Nathan Bomey on Twitter @NathanBomey.