A class action suit against Boeing has been filed in the US District Court for the Northern District of Illinois on behalf of purchasers of the company's stock between 4 May and 22 June of this year.
The complaint charges that Boeing and certain company officers and directors violated the Securities Exchange Act of 1934 by making false and misleading statements about its ability to meet first flight of the 787. Boeing on 23 June announced a delay in first flight of the aircraft, which had been scheduled to occur before the end of June.
Specifically, the complaint alleges Boeing made false and misleading statements in an effort to forestall further cancellation of orders, conceal from the market that the 787 had a structural problem that would prevent first flight by 30 June and first delivery during the first quarter of 2010. The complaint also alleges that Boeing made misleading statements in order to make a positive presentation concerning test results for the 787 and the schedule for first flight and delivery during the Paris Air Show held 15-18 June. "At which Boeing hoped to receive additional orders for the 787 and beat out the showing made by Airbus for the A380", says law firm Coughlin Stoia Geller Rudman & Robbins LLP in a statement.
The more direct competitor to the 787, the A350, secured 10 firm orders from Air Asia X during the show.
The firm says that once the delay in first flight was made on 23 June, Boeing's stock price fell 6.5%, and dropped another 6% the next day.
In the complaint submitted to the court the plaintiff is listed as The City Livonia [Michigan] Employees' retirement system, represented by Coughlin Stoia. The plaintiff is seeking to cover damages on behalf of all purchasers of Boeing common stock during that time period. A copy o the complaint can be found here.
Source: Air Transport Intelligence news
