Boeing 737 Max Safety Misrepresentation Suit Advances After Trim

Boeing Co. must face claims that the aviation giant and its former chief executive misled investors about safety issues related to two 737 Max airplane crashes, a judge said in an order dismissing part of the suit.

Judge Manish Shah found that the institutional investors who brought the suit sufficiently allege numerous claims that Boeing and former CEO Dennis Muilenburg knowingly misled investors, but dismissed all claims against former Chief Financial Officer Gregory Smith. Their alleged actions preceded the stock’s biggest intraday drop during a two-day span since the 2008 financial crisis.

The complaint didn’t sufficiently show that the ...