4th Circuit Reverses Class Certification for Boeing Stock-Drop Suit

A Fourth Circuit U.S. Court of Appeals panel reversed a lower court's decision to certify a class of investors in their suit against The Boeing Co. and its former officials over alleged misstatements about the company's emphasis on safety that artificially inflated the company's stock price.

The court ruled that the investors did not provide a damages methodology tied to their theory of liability, as required by Comcast Corp. v. Behrend, which sets a precedent for class certification in securities cases.

The decision affects a suit filed against Boeing over claims it made about safety after two fatal crashes involving its 737 Max planes in 2018 and 2019.