Boeing has been sued by shareholders who say the group put profits over safety and misled them about its commitment to making safe planes before a passenger cabin panel exploded on an Alaska Airlines 737 MAX 9 flight on Jan. 5. Reuters reports.

The Boeing 737 MAX 9 plane lost part of its fuselage during the flightPhoto: shot from Twitter

Boeing spent more than four years after the October 2018 and March 2019 crashes that killed 346 people aboard two other MAX planes, according to the complaint filed Tuesday, assuring investors that it was “focused” on safety and not will sacrifice safety for profit. News.ro notes.

Shareholders said Boeing’s claims were false and misleading because they covered up “poor quality control” on the assembly line, which sent the stock price soaring.

Boeing’s stock price fell 18.9% from January 5 to 25, 2024, the day after the US Federal Aviation Commission banned Boeing from expanding MAX production, citing safety concerns.

The drop wiped more than $28 billion off Boeing’s market value.

A Boeing representative declined to comment Wednesday.

Who sued Boeing

The lawsuit, filed in federal court in Alexandria, Virginia, covers shareholders from Oct. 23, 2019, to Jan. 24, 2024, and is led by Rhode Island State Treasurer James Diossa.

Others charged include Boeing CEO Dave Calhoun, his predecessor Dennis Muilenburg, as well as CFO Brian West and his predecessor Gregory Smith.

“This action could change Boeing’s practice of protecting passengers and ensuring their safety in the future,” Diossa said in a statement.

The Jan. 5 explosion temporarily grounded 171 MAX 9 planes, leading to the cancellation of thousands of Alaska Air Group and United Airlines flights.

Passengers of the plane that lost its fuselage in the air sued Boeing and the airline

No one was killed in the Alaska Air Group plane crash, but some passengers sued Boeing and the airline.

Boeing said on Wednesday it could not provide full-year financial targets because of uncertainty about its planes.

It also reported better-than-expected quarterly results, including a loss of $30 million, revenue of $22 billion and cash flow of $3.38 billion.

In the matter: Office of the Treasurer General of the State of Rhode Island v. Boeing Co et al, U.S. District Court, Eastern District of Virginia, no. 24-00151.