Jury clears Boeing in 737 MAX fraud lawsuit
A US federal jury in the Western District of Washington has cleared Boeing in a shareholder fraud lawsuit linked to the 737 MAX programme. The ruling delivers significant legal relief ahead of the FAA's 21 March certification hearing on the MAX 8, with Latin American operators reviewing fleet investment plans.
A US federal jury in the Western District of Washington on 22 May cleared Boeing in a $2.5 billion shareholder fraud lawsuit linked to the 737 MAX programme. The plaintiffs' counsel, Robbins Geller, said it reserves the right to appeal. Boeing chief executive Kelly Ortberg said after the ruling that 'we respect the decision and remain focused on delivering for our customers'.
The verdict arrives ahead of the FAA's 21 March re-certification hearing on the MAX 8. JPMorgan analyst Seth Seifman said the ruling 'removes overhanging uncertainty and allows order momentum to resume'. Latin American operators LATAM Airlines (Chile), Aeroméxico and Copa Airlines (Panama) together hold 184 MAX 8 and MAX 10 orders. LATAM corporate communications head María José Catalán said the decision 'allows us to proceed with the planned fleet-renewal timetable'.
Boeing shares climbed 4.7 percent in pre-market trading and the JETS airline ETF added 1.3 percent. European Union Aviation Safety Agency director Florian Guillermet reminded markets that the EU continues its parallel technical assessment, while ICBC Standard Bank senior economist Joanne Masters expects aviation-sector borrowing costs to drop by about 0.3 percentage points.
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