‘Serious safety lapses’: Boeing shareholders sue following in-flight panel blowout

Boeing shareholders filed a lawsuit on Tuesday against the aircraft company over potential “serious safety lapses” and “poor quality control” measures following a recent in-flight panel blowout, the New York Post reported.

The shareholders, who proposed a class action suit, accused Boeing of prioritizing profits over passengers’ safety and ultimately causing inflated stock prices.

The lawsuit noted that Boeing previously vowed to be “laser-focused” on ensuring safety following two MAX plane crashes in October 2018 and March 2019 that resulted in the deaths of 346 passengers. According to shareholders, the company’s promised safety commitments were false and misleading.

“Unbeknownst to investors, statements such as those above were false and misleading because Boeing failed to disclose that it had been prioritizing its profits over safety, which led to poor quality control standards in the production of its commercial aircrafts such as the 737 MAX,” the lawsuit stated.

The complaint, led by Rhode Island General Treasurer James Diossa, includes all shareholders from October 23, 2019, to January 24, 2024. Boeing Chief Executive Dave Calhoun, former CEO Dennis Muilenburg, Chief Financial Officer Brian West, and former CFO Gregory Smith are also named as defendants in the lawsuit.

Diossa stated that the legal action could prompt the company to make critical changes to ensure passengers’ safety.

“This case has the potential to effect changes in Boeing’s practices to protect passengers and ensure their safety in the future,” Diossa stated.

In January, an Alaska Airlines flight from Oregon to California was forced to make an emergency landing after a door panel blew out mid-flight. No passengers were harmed as a result of the incident, but all Boeing 737 9 MAX airplanes were grounded for a few weeks to allow for further quality control inspections. In-house inspections conducted by Alaska Airlines and United Airlines found loose bolts.

Alaska Airlines CEO Ben Minicucci told NBC News that the airline had discovered “some loose bolts on many of our MAX 9s.”

The Federal Aviation Administration has since cleared a path for the previously grounded planes to resume operations after completing its inspection and maintenance process.

In a recent statement, Boeing Commercial Airplanes President Stan Deal stated that the company’s “long-term focus is on improving our quality so that we can regain the confidence of our customers, our regulator and the flying public.”

The in-flight incident caused Boeing’s shares to fall 18.9% from January 5 to January 25.

Boeing declined to comment on the shareholders’ lawsuit, the Post reported.

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