Boeing Faces Possible Class-Action Suit Over Dreamliner
DOW JONES NEWSWIRES
Boeing Co. (BA) faces a possible class-action lawsuit over its long-delayed
787 Dreamliner.
The suit, filed on behalf of an institutional investor in federal court in
Illinois, accuses Boeing executives and directors of making false and misleading
statements between May 4 and June 22 about results of tests on the plane and the
company's ability to meet its production schedule.
In June, the company postponed the first flight, then scheduled for June 30,
because of a need to reinforce an area in the side-body section, according to
the suit. Boeing's stock fell 6.5% on June 23 and another 6% the next day, the
complaint said.
The Dreamliner is now more than two years behind schedule, and Boeing last
quarter took a $2.5 billion charge related to development costs associated with
the program. The delays have cost the company hundreds of millions of dollars in
concessions and penalties to its customers.
The Wall Street Journal, citing internal Boeing documents, reported Thursday
the company had found another issue in the test plane's composite materials.
A Boeing spokesman said Friday that the company hadn't seen the lawsuit and
declined to comment on it.
Boeing's shares rose 2 cents to $50.70 in after-hours trading. The stock is up
about 17% in the past year.
-By Kathy Shwiff, Dow Jones Newswires; 212-416-2357; Kathy.Shwiff@dowjones.com
(END) Dow Jones Newswires
11-13-091801ET
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