Boeing Free of 737 Max Investor Fraud Suit Pursued by Assignee

Boeing Co. has shed a securities suit over two crashes involving its 737 MAX airliners brought by a firm that buys recovery rights from liquidating investment funds.

Value Recapture Partners LLC doesn’t have standing to sue, Judge Virginia M. Kendall said Tuesday for the US District Court for the Northern District of Illinois. The firm lacks standing because it didn’t buy the Boeing stock itself and doesn’t meet an exception to court restrictions on the assignment of securities claims, she said.

The case has been proceeding in parallel to a proposed investor class action in the same district, alleging Boeing ...