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WASHINGTON, Jan 7 (Reuters) – A U.S. appeals court docket on Friday revived a pension plan’s 2019 shareholder lawsuit in opposition to Boeing Co officers and administrators alleging they’d made false public statements in regards to the 737 Max.
The aircraft was concerned in two crashes that killed 346 individuals over a five-month interval and led to the aircraft’s grounding in March 2019.
The Seafarers Pension Plan filed a lawsuit alleging that present and former Boeing officers and board members made false and deceptive statements in regards to the 737 MAX in proxy supplies from 2017 by 2019. The swimsuit seeks damages from these individuals on behalf of the corporate.
A U.S. District Court docket decide beforehand dismissed the lawsuit, which was filed in U.S. District Court docket in Chicago, making use of a Boeing bylaw that gave the corporate the fitting to insist claims be filed in a Delaware state court docket. In a 2-1 determination, the U.S. Court docket of Appeals for the seventh Circuit on Friday reversed the decrease court docket ruling.
Submitting the swimsuit in a federal court docket in Chicago, the place Boeing is headquartered, “appears applicable for the case,” the bulk wrote. The Delaware court docket doesn’t have jurisdiction over the federal claims at situation, the ruling mentioned.
Boeing declined to remark.
The 737 Max disaster value Boeing greater than $20 billion and grounded the aircraft for 20 months. The 737 MAX solely returned to service after the corporate made vital software program and coaching enhancements.
In November, Boeing present and former firm administrators reached a $237.5 million settlement with shareholders in a separate lawsuit over the board’s 737 MAX security oversight.
Boeing agreed to a $2.5 billion deferred prosecution settlement with the U.S. Justice Division in January 2021 stemming from the 737 MAX crashes.
Reporting by David Shepardson and Jonathan Stempel; enhancing by Jonathan Oatis and Cynthia Osterman