Friday, November 20, 2009
Boeing 787 Dreamliner (photo: Boeing Photo)
Boeing is facing a lawsuit for concealing structural defects in its new 787 Dreamliner, causing its stock price to plummet once the truth got out. Shareholders of the aircraft manufacturer are claiming the company misrepresented test results of the 787, giving the impression the plane was still on schedule for production and causing Boeing shares to go up in price. But after executives admitted to knowing about the problem, the stock dropped 12% in two days.
Although this is a class action suit, the plaintiffs in the case are the employees of the city of Livonia, Michigan, whose retirement fund had invested in Boeing.
-Noel Brinkerhoff
Shareholders Say Boeing Pumped Stock Price By Concealing Defects in 787 Dreamliner (by A.E. Young, Courthouse News Service)
City of Livonia Employees’ Retirement System vs. The Boeing Company (U.S. District Court Northern District of Illinois Eastern Division) (PDF)
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