Boeing, Southwest Will Face Racketeering Claims Over 737 Max 8

Boeing Co. and Southwest Airlines Co. must face passengers’ racketeering claims alleging the companies hid known flaws in 737 Max 8 planes, which caused them to pay too much for tickets, a federal district court in Texas said.

The passengers allege the companies violated the Racketeer Influenced and Corrupt Organizations Act by lying about the safety of the planes, which, in turn, allowed Southwest to over charge them for their tickets.

The companies said the alleged overcharge wasn’t an economic injury. Instead, they said the passengers were monetizing the risk of physical harm, which isn’t legally permissible.

But the ...