Treasurer Diossa Announces Securities Class Action Against The Boeing Company on Behalf of Employees’ Retirement System of Rhode Island

Published on Tuesday, June 11, 2024

Providence, RI – Today, Rhode Island General Treasurer James A. Diossa announced that the Employees’ Retirement System of Rhode Island (ERSRI)  filed a securities class action against The Boeing Company (“Boeing”) (NYSE: BA) and certain of its officers, including President and CEO David Calhoun, former President and CEO Dennis Muilenburg, and Chief Financial Officer Brian West.

“ERSRI 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 alleges serious safety lapses at Boeing and false and misleading statements or omissions to the market concerning those safety lapses.  In particular, on January 5, 2024, Alaska Airlines Flight 1282 was diverted back to Portland, Oregon after a door plug (a panel installed to replace an optional emergency exit door) on the Boeing 737 MAX 9 aircraft blew out and caused an uncontrolled decompression of the aircraft shortly after takeoff.  Later that day, the National Transportation Safety Board and Federal Aviation Administration announced that they had initiated safety investigations into the incident.  Then, on January 8, 2024, United Airlines disclosed that personnel had found loose bolts during inspections on an undisclosed number of grounded aircraft and Alaska Airlines also announced that their inspections found “loose hardware” on some aircraft.  Following these disclosures, Boeing’s stock price plummeted from $249.00 on January 5, 2024 to $200.52 on January 16, 2024, a $48.48 or 19.5% decline.

The civil case was filed in the United States District Court Eastern District of Virginia.