ALEXANDRIA, Va. (Legal Newsline) - Sure, a Virginia judge has ruled in approving a partnership between two class action law firms trying to sue Boeing over a drop in its stock value.
Judge Leonie Brinkema on April 22 said Labaton Keller Sucharow and Robbins Geller are free to team as lead counsel for a lawsuit against the company, which suffered financial problems caused by recent failures of its 737 Max planes.
The two had filed competing motions for appointment as lead counsel but on April 15 notified the court they had decided to work together.
Their clients feel it is "in the best interests of the Class to jointly prosecute this Action."
Labaton and Cohen Milstein, which is among liaison counsel for the class, filed their case on behalf of the State of Rhode Island. Robbins Geller represents the Local #817 IBT Pension Fund.
Boeing and its executives are the defendants in the case. It alleges violations of federal securities laws and is brought on behalf of all entities that purchased or acquired Boeing common stock between October 23, 2019 and January 24, 2024.
The plaintiffs accuse Boeing of outsourcing the production and assembly of its airplane components to third-party suppliers to cut costs and production time, thereby compromising safety standards. This practice allegedly led to two fatal crashes involving Boeing's 737 MAX 8 planes due to design flaws in the flight control software.
The case also alleges that despite promising enhanced focus on safety following these disasters, Boeing failed to uphold adequate quality control standards. The company had previously entered into a deferred prosecution agreement with the U.S Department of Justice in January 2021 related to these incidents.