Stockholders v The Boeing Company
Stockholders File Lawsuit Against The Boeing Company
According to a press release dated November 13, 2009, the complaint charges Boeing and certain of its officers and directors with violations of the Securities Exchange Act of 1934. Boeing is involved in the design, development, manufacture, sale and support of military aircraft, satellites, missile defense, human space flight, launch systems and services, and commercial jetliners, including the Dreamliner 787 (787), Boeings principal next generation commercial airplane, which has been eagerly awaited by the commercial airline market and the financial markets since it was first announced in 2004.
The complaint alleges that during the Class Period, defendants made false and misleading statements to the market concerning the results of the testing process for the 787 and the Companys ability to meet the schedule for the first flight and delivery of the 787. Specifically, the complaint alleges defendants made these false and misleading statements in an effort to: (a) forestall further cancellations of orders for the 787, particularly as the orders for its competition, the Airbus A380, were gaining ground; (b) conceal from the market the material fact that the 787 had a structural problem in its design that would prevent the first flight of the 787 by June 30, 2009, and delivery in the first quarter of 2010; and (c) enable Boeing to make a positive presentation concerning the test results for the 787 and the schedule for the first flight and delivery of the 787 at the Paris Airshow, scheduled for June 15-18, 2009, at which Boeing hoped to receive additional orders for the 787 and beat out the showing made by the Airbus for its A380. On June 23, 2009, Boeing announced that the first flight of the 787 would be postponed due to a need to reinforce an area within the side-of-body section of the aircraft and that the first flight would be rescheduled. On this news, Boeings stock price fell 6.5% to close at $43.87 per share on June 23, 2009, and dropped a further 6% the next day to close at $41.32 per share.
If you bought The Boeing Company securities and would like to obtain information about the The Boeing Company lawsuit, then you are invited to call Kahn Swick & Foti, LLC toll free at (866) 467-1400 extension 100 to speak with an attorney or visit www.ksfcounsel.com
