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Boeing shareholders sue over 787 jet

Investors claim the plane maker made misleading statements about when the delayed Dreamliner would be ready to fly. The firm's CEO is named as a defendant in the suit, which seeks class status.

November 17, 2009|Bloomberg News
  • The first fully assembled Boeing 787 Dreamliner jet was unveiled to employees and executives in July 2007.
The first fully assembled Boeing 787 Dreamliner jet was unveiled to employees… (Ted S. Warren / Associated…)

Boeing Co., whose 787 Dreamliner jet has been delayed more than two years by production difficulties, was sued by investors claiming company executives made misleading public statements about when the aircraft would be flight ready.

The city of Livonia, Mich., employees' retirement system filed the complaint Nov. 13 in federal court in Chicago, seeking class-action, or group, status on behalf of all investors allegedly misled by statements made from May 4 to June 22.

Also named as defendants were Boeing Chief Executive W. James McNerney and Scott E. Carson, who in August announced he would step down from leading the Chicago-based company's commercial airplane division.

"As the date for the maiden flight of the 787 approached, defendants made a series of misleading statements to the market concerning the results of the testing process for the 787 and Boeing's ability to meet the schedule for the first flight and the delivery of the 787," according to the complaint.

Boeing, the world's second-largest commercial airplane maker, initially planned to deliver its first jets to customers in May 2008. That date has been postponed five times, most recently in June, when engineers discovered structural problems where the plane's wings are joined to the fuselage.

In a statement filed Tuesday with the U.S. Securities and Exchange Commission, Boeing said a second lawsuit, making similar allegations, was filed against it in federal court in East St. Louis, Ill.

"The company believes the lawsuits are without merit and will vigorously defend them," it said.

Boeing shares rose 5 cents to $52.53.

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