Rhode Island General TreasurerJames Diossa today announced that the Employees’ Retirement System of Rhode Island has filed a securities class action against The Boeing Company, alleging serious safety lapses that led to numerous product diversions and safety issues.
The lawsuit was filed in the United States District Court Eastern District of Virginia. It names as defendants Boeing, its President and CEO David Calhoun, former President and CEO Dennis Muilenburg, and Chief Financial Officer Brian West.
The lawsuit alleges that Boeing breached the trust of Rhode Islanders by exposing them to the risks of faulty aircraft. It accuses Boeing of making false and misleading statements about the safety of their products, and failing to take necessary steps to address the safety issues.
“The Employees’ Retirement System of Rhode Island is taking the lead and holding companies that affect the financial wellbeing of Rhode Islanders to the highest standards. Boeing betrayed the trust of Rhode Island pensioners and must be held accountable for their actions,” said General Treasurer Diossa. “The disregard for safety displayed in these series of events involving Boeing aircrafts are deeply concerning. We believe that this case has the potential to effect changes in Boeing’s practices to protect passengers and ensure their safety in the future.”
The lawsuit cites several incidents as examples of Boeing’s alleged negligence, including the January 5, 2024 diversion of Alaska Airlines Flight 1282 back to Portland, Oregon, after a door plug on the Boeing 737 MAX 9 aircraft blew out and caused an uncontrolled decompression of the aircraft shortly after takeoff.
The lawsuit also points to the January 8, 2024 disclosure by United Airlines of loose bolts during inspections of an undisclosed number of grounded aircraft, and the subsequent announcement by Alaska Airlines of “loose hardware” on some aircraft.
The stock price of The Boeing Company has fallen significantly in recent weeks, in response to these safety issues.
Generative artificial intelligence (AI) assisted a What’sUpNewp journalist with the reporting included in this story.
