Boeing Must Defend Against Institutional Investors’ 737 MAX Suit

Boeing Co. and former CEO Dennis Muilenburg must defend against institutional investor allegations tied to statements about the planemakers’ troubled 737 MAX, which drew safety concerns after the 2018 crash of a Lion Air jet and an Ethiopian Airlines crash the following year.

New allegations “raise a strong inference that Boeing and Muilenberg knowingly, or at least recklessly, told flight crews to follow existing procedures when they knew the procedures did not sufficiently address” a software component’s activation, Judge Manish S. Shah said. Shah allowed part of the lawsuit brought by investment funds associated with the Teachers Insurance and Annuity ...