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Case Status:    SETTLED
On or around 02/21/2002 (Date of order of final judgment)

Filing Date: October 31, 1997

According to the Company’s FORM 10-Q for the quarterly period ended June 30, 2002, on October 31, 1997, a federal securities lawsuit was filed against the Company in the U.S. District Court for the Western District of Washington, in Seattle. The lawsuit named as defendants the Company and three of its then executive officers. Additional lawsuits of a similar nature were filed in the same court and were consolidated. The lawsuits generally alleged that the defendants desired to keep the Company's share price as high as possible in order to ensure that the McDonnell Douglas shareholders would approve the merger of Boeing and McDonnell Douglas and, in the case of the individual defendants, to benefit directly from the sale of Boeing stock. The Court certified two subclasses of plaintiffs in the action. The plaintiffs sought compensatory damages and treble damages. On September 17, 2001, the Company reached agreement with class counsel to settle the lawsuit for $92.5 million. The settlement, which will have no effect on the Company's earnings, cash flow or financial position, as it is within insurance limits, was approved by the Court in February 2002.

The original Complaint charges Boeing and a number of senior officers and directors with making a series of material misrepresentations and omissions regarding the Company's problems arising from a ramp-up of production output, including substantial late delivery penalties and other undisclosed costs. Plaintiff alleges that, in omitting and misrepresenting these material facts, the Defendants intended to artificially inflate the Company's share price during the Class Period, in order to facilitate a successful and beneficial conclusion to merger discussions with McDonnell Douglas. The Complaint further charges that the Company's Chairman and CEO, and the Company's Chief Financial Officer, engaged in massive insider selling during the Class Period, during which they sold thousands of shares at artificially inflated prices, for total proceeds of over $2 million. On October 22, 1997, Boeing revealed that it would report a loss for the third quarter of 1997, due to late delivery costs and other expenses associated with the Company's production difficulties, which would total approximately $1.6 billion during the quarter, and another $1 billion afterwards. This shocking disclosure prompted a $4 fall in Boeing's share price on October 22, 1997.

COMPANY INFORMATION:

Sector: Capital Goods
Industry: Aerospace & Defense
Headquarters: United States

SECURITIES INFORMATION:

Ticker Symbol: BA
Company Market: New York SE
Market Status: Public (Listed)

About the Company & Securities Data


"Company" information provides the industry and sector classification and headquarters state for the primary company-defendant in the litigation. In general, "Securities" information provides the ticker symbol, market, and market status for the underlying securities at issue in the litigation.

In most cases, the primary company-defendant actually issued the securities that are the subject of the litigation, and the securities information and company information relate to the same entity. In a small subset of cases, however, the primary company-defendant is not the issuer (for example, cases against third party brokers/dealers), and the securities information and company information do not relate to the same entity.
COURT: W.D. Washington
DOCKET #: 97-CV-1715
JUDGE: Hon. Thomas S. Zilly
DATE FILED: 10/31/1997
CLASS PERIOD START: 07/21/1997
CLASS PERIOD END: 10/22/1997
PLAINTIFF FIRMS NAMED IN COMPLAINT:
  1. Cohen Milstein Hausfeld & Toll PLLC (Seattle WA)
    701 Fifth Avenue, Suite 6860, Cohen Milstein Hausfeld & Toll PLLC (Seattle WA), WA 98014
    206.521.0080 206.521.0166 · lawinfo@cmht.com
  2. Hagens Berman & Mitchell
    2425 East Camelback Road; Suite 620, Hagens Berman & Mitchell, AZ 85016
    602.840.5900. 602.840.3012 · info@hagens-berman.com
  3. Levy & Levy

    ·
  4. Milberg Weiss Bershad Hynes & Lerach LLP (S.F., CA)
    100 Pine Street - Suite 2600, Milberg Weiss Bershad Hynes & Lerach LLP (S.F., CA), CA 94111
    415.288.4545 415.288.4534 ·
  5. Milberg Weiss Bershad Hynes & Lerach LLP (San Diego, CA)
    600 West Broadway, 1800 One America Plaza, Milberg Weiss Bershad Hynes & Lerach LLP (San Diego, CA), CA 92101
    800.449.4900 · support@milberg.com
  6. Rabin & Peckel LLP
    275 Madison Avenue, 34th Floor, Rabin & Peckel LLP, NY 10016
    212.682.1818 212.682.1892 · email@rabinlaw.com
  7. Wechsler Harwood LLP
    488 Madison Avenue 8th Floor, Wechsler Harwood LLP, NY 10022
    212.935.7400 · info@whhf.com
No Document Title Filing Date
COURT: W.D. Washington
DOCKET #: 97-CV-1715
JUDGE: Hon. Thomas S. Zilly
DATE FILED: 02/03/2000
CLASS PERIOD START: 04/07/1997
CLASS PERIOD END: 10/22/1997
PLAINTIFF FIRMS NAMED IN COMPLAINT:
  1. Cohen Milstein Hausfeld & Toll PLLC (Seattle WA)
    701 Fifth Avenue, Suite 6860, Cohen Milstein Hausfeld & Toll PLLC (Seattle WA), WA 98014
    206.521.0080 206.521.0166 · lawinfo@cmht.com
  2. Hagens Berman, LLP
    1301 Fifth Avenue Suite 2900, Hagens Berman, LLP, WA 98101
    206.623.7292 · info@hagens-berman.com
  3. Levy & Levy

    ·
  4. Milberg Weiss Bershad Hynes & Lerach LLP (S.F., CA)
    100 Pine Street - Suite 2600, Milberg Weiss Bershad Hynes & Lerach LLP (S.F., CA), CA 94111
    415.288.4545 415.288.4534 ·
  5. Milberg Weiss Bershad Hynes & Lerach LLP (San Diego, CA)
    600 West Broadway, 1800 One America Plaza, Milberg Weiss Bershad Hynes & Lerach LLP (San Diego, CA), CA 92101
    800.449.4900 · support@milberg.com
  6. Rabin & Peckel LLP
    275 Madison Avenue, 34th Floor, Rabin & Peckel LLP, NY 10016
    212.682.1818 212.682.1892 · email@rabinlaw.com
  7. Wilson Sonsini Goodrich & Rosati. Professional Corporation
    650 Page Mill Road, Wilson Sonsini Goodrich & Rosati. Professional Corporation, CA 94304-1050
    650.493.9300 650.565.5100 ·
No Document Title Filing Date