Litigation team led by Scott+Scott attorneys Donald A. Broggi, Justin O. Reliford, Maxwell R. Huffman, Geoffrey M. Johnson, Jing-Li Yu, Ora L. Lupear and Elizabeth Dragovich appointed as Co-Lead Counsel in derivative lawsuit on behalf of pension fund stockholders of The Boeing Co.
WILMINGTON, DE – We are pleased to announce that Vice Chancellor Morgan T. Zurn has appointed Scott+Scott as Co-Lead Counsel in a lawsuit filed against certain directors and officers of The Boeing Co. regarding their continued lack of oversight over airplane safety.
The lawsuit, filed by Scott+Scott, along with co-counsel, challenges significant oversight failures that have led to, or otherwise allowed, serious production and safety issues at Boeing to remain unchecked. The plaintiffs in the Delaware lawsuit include three pension fund stockholders: Oklahoma Firefighters Pension and Retirement System, Ohio Public Employees Retirement System, and State Teachers Retirement System of Ohio. The derivative lawsuit seeks damages on behalf of Boeing, the nominal defendant, from the directors and officers responsible for ensuring Boeing’s compliance with applicable airplane safety laws and a deferred prosecution agreement with the United States government. According to the complaint, Boeing’s directors and officers breached their fiduciary duties by prioritizing aggressive production schedules and profits over airplane safety, despite known risks and issues with Boeing’s production processes and parts suppliers.
Plaintiffs in the Delaware Court of Chancery action originally filed the same claims in an action in the United States District Court for the Eastern District of Virginia, captioned Oklahoma Firefighters Pension and Retirement System v. Calhoun, et al., No. 1:24-cv-01200-LMB-LLRVVAED. Having sustained the federal derivative claims in that action, which are currently in discovery and heading towards trial, the District Court severed plaintiffs’ oversight claims to be re-filed in Delaware, where another state law derivative complaint was on file.
Ruling that the state pension fund plaintiffs should lead both actions, the Court of Chancery reasoned: “Efficiency favors a single set of plaintiffs and counsel leading both derivative actions. […] their knowledge of the field to improve efficiency for both sides,” said Vice Chancellor Zurn in his decision to appoint Scott+Scott and co-counsel to plaintiffs’-side Co-Lead Counsel.
The Scott+Scott team of attorneys will be led in both actions by Partners Donald A. Broggi, Justin O. Reliford, Maxwell R. Huffman, Geoffrey M. Johnson, Jing-Li Yu, and associates Ora L. Lupear and Elizabeth Dragovich. Scott+Scott’s Co-Lead Counsel in both actions include attorneys from Bleichmar Fonti & Auld LLP and Grant & Eisenhofer PA. Finding that this group of attorneys was better fit to lead the overall litigation efforts, Vice Chancellor Zurn noted that the three firms were “vigorously prosecut[ing] the federal derivative action” in the Eastern District of Virginia, which is known for fast-paced litigation and aggressive trial schedules.