Judge Mary Colleen Roberts of Cook County, Illinois has denied a motion brought by Boeing to dismiss a securities fraud suit filed on behalf of funds managed by Pentwater Capital Management. The suit alleges that, following two aviation disasters involving the company’s jets, Boeing misled investors as to the timeline of the planes’ return to service schedule, resulting in significant damages.
The suit claims that the company and its executives “lie[d] their way out of the consequences of an aeronautical catastrophe of their own making” in connection with the crashes of Boeing aircraft owned by Lion Air in Indonesia in 2018 and Ethiopian Airlines in 2019. The Court denied the motion in its entirety. Thomas E. Redburn Jr., chair of Lowenstein’s Securities Litigation Group, argued in opposition to Boeing’s motion to dismiss on behalf of the Pentwater funds during the April 3 hearing. The Lowenstein team also includes Maya Ginsburg, and Joshua Nelson. Law360 reported on the successful outcome.
