Key facts
- A U.S. appeals court decertified a shareholder class action against Boeing.
- The lawsuit alleged Boeing prioritized profit over safety.
- The court found fault with the shareholders' method for calculating classwide damages.
- A separate ruling upheld the dismissal of a criminal case against Boeing linked to fatal 737 MAX crashes.
A federal appeals court on Monday decertified a shareholder class action lawsuit against Boeing, which had accused the aircraft manufacturer of prioritizing profit over safety and misrepresenting its commitment to safe aircraft prior to the mid-air cabin panel blowout on an Alaska Airlines 737 MAX 9.
The 4th U.S. Circuit Court of Appeals criticized the shareholders' methodology for demonstrating how damages could be calculated on a classwide basis.
In a separate development, a federal appeals court on Tuesday upheld a lower court's decision to approve the Justice Department's dismissal of a criminal case against Boeing. This ruling allows the company to avoid prosecution for charges stemming from two fatal 737 MAX plane crashes that resulted in 346 fatalities. Judge Reed O'Connor had previously stated he lacked the authority to reject the government's deal with Boeing, despite concerns about ensuring public safety.