NEW YORK, Feb. 02, 2024 (GLOBE NEWSWIRE) — Gainey McKenna & Egleston announces that a securities class action lawsuit has been filed in the United States District Court for the Eastern District of Virginia on behalf of all persons or entities who purchased or otherwise acquired The Boeing Company (“Boeing” or the “Company”) (NYSE: BA) securities between October 23, 2019 and January 24, 2024, inclusive (the “Class Period”).
The Complaint alleges that on January 5, 2024, Alaska Airlines Flight 1282 was forced to make an emergency landing minutes after take-off when a door plug blew off mid-flight. Over that weekend, the Federal Aviation Administration (“FAA”) issued an emergency order grounding 171 Boeing 737 MAX 9 jets as it began safety inspections of 737 MAX planes alongside Boeing and airline operators. On January 8, 2024, Morgan Stanley noted that without a significant improvement in quality control, a steep ramp-up in aircraft production for Boeing would be unlikely and “imprudent,” with a likely increase in regulatory scrutiny on Boeing potentially causing certification delays to new 737 MAX models.
The Complaint also alleges that on January 9, 2024, news outlets reported that United Airlines had found loose bolts on exit door plugs during their FAA-mandated inspections of Boeing 737 MAX planes. On this news, the price of Boeing stock fell. Thereafter, on January 11, 2024, news outlets reported that the FAA had informed Boeing it had launched a formal investigation into whether Boeing had failed to properly ensure its aircraft were safe for operation. On this news, the price of Boeing stock fell.
The Complaint also alleges that on January 12, 2024, the FAA stated that a comprehensive audit was set to be conducted on the Boeing 737 MAX 9 production line and its associated suppliers. Then, on January 16, 2024, Wells Fargo downgraded Boeing’s stock citing risks associated with the FAA’s inspection of Boeing’s production. On this news, the price of Boeing stock fell nearly 8%. Then, on January 24, 2024, news outlets reported that the FAA had announced it would not allow Boeing to expand production of the 737 MAX due to safety concerns related to the January 5, 2024 incident. On this news, the price of Boeing stock fell nearly 6%.
Investors who purchased or otherwise acquired shares of Boeing should contact the Firm prior to the April 1, 2024 lead plaintiff motion deadline. A lead plaintiff is a representative party acting on behalf of other class members in directing the litigation. If you wish to discuss your rights or interests regarding this class action, please contact Thomas J. McKenna, Esq. or Gregory M. Egleston, Esq. of Gainey McKenna & Egleston at (212) 983-1300, or via e-mail at tjmckenna@gme-law.com or gegleston@gme-law.com.
Please visit our website at http://www.gme-law.com for more information about the firm.
