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Boeing’s Pal Spirit AeroSystems Dodges Investor Lawsuit, Thanks to US Court’s Verdict

Hang on a minute! In a surprising turn of events, the US appeals court gave a thumbs up to the dismissal of a lawsuit that had Spirit AeroSystems, a major Boeing supplier, in the hot seat. The suit claimed that Spirit had pulled the wool over investors’ eyes, keeping mum about some production hiccups for the notorious 737 MAX post those tragic crashes in 2018 and 2019.

Picture this: A trio of judges from the 10th U.S. Circuit Court of Appeals in Denver mulled it over and with a 2-1 decision, basically said, “Sorry folks, you haven’t made a strong enough case for fraud.” That’s a tough cookie for the investors hoping for a class action, right?

Spirit AeroSystems couldn’t help but heave a sigh of relief, saying, “We’re mighty grateful for the clear-headed verdict from the Tenth Circuit, backing up the initial call by the U.S. District Court in Oklahoma.”

Now, if you’ve been living under a rock, the Federal Aviation Administration (FAA) and their global counterparts had the 737 MAX grounded after those mishaps, not letting it back in the skies until November 2020. During this hiatus, Boeing played it cool, cutting down the 737 MAX production but oddly still ordering the usual number from Spirit. For those scratching their heads, we’re talking about shipsets – those big parts making up the plane.

And here’s the kicker: Despite Boeing’s wobbly plans, Spirit, in October 2019, confidently told its investors they’d keep churning out those shipsets. Fast forward to December, and Boeing pulls the rug out, telling Spirit to stop the deliveries for the 737 MAX.

The folks crying foul, the plaintiffs, claimed that Spirit bigwigs had reassured them even after Boeing had whispered about buying fewer shipsets. The Spirit honchos, however, firmly shook their heads in denial.

And then there’s the cherry on top: Gilson, one of Spirit’s top dogs, packed his bags after an internal review showed some sketchy accounting practices in 2019. But, before anyone jumps the gun, the Securities and Exchange Commission gave Spirit a clean bill of health in 2020, closing the case with no further action.

In the grand scheme of things? Just another day in the tumultuous world of aviation!

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