Boeing, Ex-CEO Unable to Escape Fraud Claims Related to 737 MAX

Boeing Co. and its former chief executive officer must face securities fraud claims related to their comments after two crashes involving 737 MAX airplanes, a federal court said.

The amended complaint by Boeing shareholders stated a valid securities fraud claim against the aerospace giant and its former CEO Dennis Muilenburg, Judge Franklin U. Valderrama said Monday for the US District Court for the Northern District of Illinois said Monday. They sufficiently pleaded that the defendants knowingly made false statements about the safety of the 737 MAX, and how “existing procedures” were sufficient for flight crews to address the stabilization problems, ...