The Boeing Company (2009)

Class Period: May 4, 2009 to Jun 22, 2009

Lead Plaintiff Deadline: Jan 12, 2010 + Deadline passed

Summary of Case:

A securities class action has been filed against The Boeing Company (2009) (BA) ("Boeing" or the "Company") on behalf of all securities purchasers from May 4, 2009 through June 22, 2009, inclusive ("Class Period"), in the United States District Court for the Northern District of Illinois.

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 Dreamliner 787 ("787"), The Company's 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, and the Company's 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, Boeing's 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 purchased this company's shares during the Class Period and suffered a loss or for further information about the case, please review the links below.