Boeing 'effectively put profitability and growth ahead of airplane safety and honesty,' according to the filing at a Chicago federal court.
The fallout from Boeing's recent difficulties over a fatal crash in Ethiopia continued when shareholders filed a lawsuit against the company.
The filing at a Chicago federal court alleges that the aerospace company defrauded investors over the safety features of Boeing's 737 Max aircraft which was involved in two fatal crashes: one in Ethiopia last month and another in Indonesia last year.The suit names Boeing CEO Dennis Muilenburg and Chief Financial Officer Gregory Smith as defendants,
The company's stock has fallen $34 billion since the crash in Ethiopia last month in which 157 people died despite the pilots onboard following the relevant procedures to prevent the crash. It follows a similar incident on a Lion Air flight which crashed in Indonesia five months before, killing 176 people.
The securities fraud violations lawsuit, filed by shareholder Richard Seeks, alleges that Boeing rushed out the 737 Max model to compete with European rival Airbus while neglecting to includeThe 737 Max has been grounded globally, and
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