Investor Alert: Kaplan Fox Announces Investigation Of The Boeing Company

NEW YORK, March 18, 2019 /PRNewswire/ -- Kaplan Fox & Kilsheimer LLP (www.kaplanfox.com) is investigating claims on behalf of investors of The Boeing Company ("Boeing" or the "Company") (NYSE: BA).  Investors who purchased Boeing securities may be affected.

On October 29, 2018, a flight operated by the Indonesian airline Lion Air crashed shortly after takeoff, killing all passengers and crew.  The plane was a Boeing 737 MAX 8, an aircraft certified by the Federal Aviation Administration (the "FAA") in 2017.  On October 29, 2018 following news of the crash, Boeing's stock price fell 6.6%, $23.68 per share, to close at $335.59 per share. Reportedly, subsequent analysis indicated that the aircraft experienced problems with airspeed indicators and a related system that feeds data to computers about the angle of the aircraft's nose.   

On November 12, 2018, The Wall Street Journal reported that "Boeing Withheld Information on 737 Model, According to Safety Experts and Others."  Reportedly, an automated stall-prevention system in the 737 MAX 8 and MAX 9 aircraft – intended to help cockpit crews avoid mistakenly raising a plane's nose dangerously high – can sometimes, under unusual conditions, push the nose down unexpectedly and so strongly that flight crews cannot pull it back up.  According to the November 12, 2018 Wall Street Journal article, this information was never relayed to pilots and may have been the cause of the crash.  On November 12, 2018, Boeing's stock price fell $12.31 per share, or 3.3%, to close at $357.03 per share on November 12, 2018.

On Sunday March 10, 2019, the same model of aircraft, a Boeing 737 MAX 8, crashed in Ethiopia. Following this news, Boeing's shares fell $22.53 per share, or about 5.3%, to close at $400.01 per share on March 11, 2019.  Boeing's shares also declined the next trading day by $24.60 per share, more than 6%, to close at $375.41 per share.

Then, on March 18, 2018, The Wall Street Journal reported that prosecutors from the U.S. Department of Justice's criminal division are scrutinizing the development of Boeing's 737 MAX aircraft.  Additionally, the Seattle Times aerospace reporter published an article stating that "the original safety analysis that Boeing delivered to the FAA for a new flight control system on the MAX – a report used to certify the plans as safe to fly – had several crucial flaws."  Among other things, the safety analysis reportedly "[a]ssessed a failure of the system as one level below 'catastrophic.'"  Following this news, Boeing's shares declined in midday trading.

If you are an investor in Boeing and would like to discuss our investigation, please contact us by emailing [e-mail] or by calling 800-290-1952.

This press release may be considered Attorney Advertising in some jurisdictions under the applicable law and ethical rules.

Kaplan Fox & Kilsheimer LLP, with offices in New York, San Francisco, Los Angeles, Chicago and New Jersey, has many years of experience in prosecuting investor class actions. For more information about Kaplan Fox & Kilsheimer LLP, you may visit our website at www.kaplanfox.com.  If you have any questions about this Notice, your rights, or your interests, please contact:

Jeffrey P. Campisi
KAPLAN FOX & KILSHEIMER LLP
850 Third Avenue, 14th Floor
New York, New York 10022
[phone]
[phone]
Fax: [phone]
E-mail: [e-mail]

Laurence D. King
KAPLAN FOX & KILSHEIMER LLP
350 Sansome Street, Suite 400
San Francisco, California  94104
[phone]
Fax:  [phone]
E-mail: [e-mail]

 

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SOURCE Kaplan Fox & Kilsheimer LLP