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America December 8, 2024 3 mins read

Boeing Stockholders Secure Intervention in Delaware Derivative Case

America ı By Rochdi Rais

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Boeing 737 Max

Attorneys representing stockholders in a derivative lawsuit against Boeing Co. were granted approval on Friday to intervene in a related case filed in Delaware’s Court of Chancery. The move was made in response to concerns that a "dilatory" approach by the Delaware plaintiffs could jeopardize the progress of both lawsuits.

Vice Chancellor Morgan T. Zurn approved the intervention after neither Boeing's attorneys nor the Delaware plaintiffs opposed it. The intervention primarily focuses on a motion to expedite the Delaware case, which, like the Virginia case, seeks substantial damages from Boeing’s current and former executives over alleged safety violations and oversight failures linked to the 737 Max, 777, and 787 commercial aircraft.

The Virginia lawsuit was filed on July 9 by the Oklahoma Firefighters Pension and Retirement System, seeking damages on Boeing’s behalf due to production issues and several safety breaches. The lawsuit is centered around multiple incidents, including a January Alaska Airlines door-plug blowout on a 737 Max.

Weeks later, the Ohio Public Employees Retirement System and the State Teachers Retirement System of Ohio moved to intervene in the Virginia case. They also sought a stay in that court while a books and records review was completed.

The Ohio groups filed a motion in Delaware on Thursday, pointing to the fact that Delaware plaintiffs filed a similar derivative complaint on November 25, 2024, without completing a books and records investigation. The Ohio parties argued that the Delaware plaintiffs had not been transparent about the status of the Virginia case and that this could impact the decision on whether to expedite the Delaware action.

A key point raised by the Ohio groups was the concern that Delaware plaintiffs might face dismissal with prejudice if they did not amend their complaint in response to a motion to dismiss. They also highlighted U.S. District Court Judge Leonie M. Brinkema’s prior comments on the Virginia case, which indicated that even if a motion to dismiss was granted, it would be without prejudice, allowing for another suit to be filed.

The Delaware case, which is currently underway, includes the Construction and General Building Laborers' Local Union No. 79 General Fund, Central Laborers' Pension Fund, and the Walter E. Ryan Jr. Revocable Trust U/A as plaintiffs. Legal teams representing these groups include Prickett Jones & Elliott PA, Hach Rose Schirripa & Cheverie LLP, Block & Leviton LLP, and The Law Office of Kenneth T. Goldstein.

Boeing’s legal team is led by Sharon L. Nelles and other prominent attorneys from Sullivan & Cromwell LLP and McGuireWoods LLP.

The intervention is viewed as a significant step in the ongoing litigation involving Boeing, as it highlights the ongoing legal challenges faced by the aerospace giant following multiple safety breaches and aircraft crashes.

The case is Oklahoma Firefighters Pension and Retirement System v. Calhoun et al., case number 1:24-cv-01200, in the U.S. District Court for the Eastern District of Virginia, and Construction and General Building Laborers' Local Union No. 79 et al., v. Uma M. Amuluru et al., case number 2024-1210, in the Court of Chancery of the State of Delaware.

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Rochdi Rais

Rochdi Rais is the Head of Growth and financial and legal writer at USA Herald. He has been writing and editing financial, legal and U.S. news for years with over +4000 articles published during his career.

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