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Boeing’s stock has slid more than 8% in the past week as investors grow increasingly concerned that it could be held liable for the deadly Lion Air crash last month.
The first lawsuit against Boeing related to the crash was filed Thursday. The parents of one passenger sued the company, claiming that the downed plane, a 737 MAX 8, had an unsafe design.
Lion Air flight 610 crashed on October 29 into the sea near Jakarta, Indonesia, soon after taking off killing all 189 on board.
The suit alleges Boeing failed to communicate a new safety feature that hadn’t existed in previous 737s. Lion Air’s operational director accused Boeing of withholding information from pilots about a safety feature that automatically lowers the airplane’s nose to prevent or exit a stall.
Justin Green, an attorney for Kreindler & Kreindler and a CNN aviation analyst, said he believes that Boeing might “very well” be held liable.
“Boeing had provided its customers prior to the service bulletin, but did not adequately inform pilots of the potential problem and how to respond to it,” he said.
Boeing recently told CNN that it doesn’t “discuss specifics of an ongoing investigation” and it has provided updates to airlines about existing safety procedures on the 737 MAX 8.
“We are confident in the safety of the 737 MAX. Safety remains our top priority and is a core value for everyone at Boeing,” the spokesperson said.
American Airlines (AAL) said it was “unaware of some the functionality” on the 737 MAX 8 and said its work with Boeing is “ongoing.” The airline has more than a dozen in operation.
But this past week’s Boeing (BA) losses have weighed heavily on the Dow and is one of its worst performers. Still, the Chicago-based company’s stock is up nearly 16% for the year.
