Boeing NYSE:BA scored a legal win Monday after a federal appeals court decertified a shareholder class action tied to the January 2024 Alaska Airlines 737 Max 9 door-plug blowout.
The 4th U.S. Circuit Court of Appeals ruled that the proposed investor class had not provided a reliable method for calculating damages across all shareholders. The case now returns to a federal district court in Virginia for further proceedings.
Boeing makes commercial aircraft, defense systems and aviation services. Its safety record has remained under intense scrutiny since two fatal 737 Max crashes in 2018 and 2019 killed 346 people.
The lawsuit alleges Boeing misled investors by publicly emphasizing safety while prioritizing profitability. Investors who held shares between January 2021 and January 2024 had previously been allowed to pursue the claims as a group.