Boeing Misled Investors on Safety of New 737s, Suit Says

The Boeing Co. allegedly misled investors about the safety of the stall-prevention system used in 737 MAX planes like the one involved in October’s Lion Air crash.

The jetmaker and its executives didn’t tell shareholders its new plane’s automated stall-prevention feature might have “deadly malfunctions,” according to a Nov. 28 complaint. Investigators have implicated the system in Indonesian airline Lion Air’s deadly Oct. 29 crash, the complaint said.

The stall-prevention system is meant to keep pilots from accidentally “raising a plane’s nose dangerously high,” according to the complaint. However, the crash investigation revealed that the feature could sometimes push ...