Boeing Lawsuit: Boeing VIP Retirement Plan
Attention: Current, former, or retired Boeing employees.
Berger Montague is conducting an investigation and asking to hear from anyone who:
- Works or has worked for Boeing;
- Participated in Boeing’s Voluntary Investment Plan after October 29, 2018; and
- Invested any account assets in the VIP Stock Fund, which invests in Boeing stock shares.
We believe that for many years, in violation of the federal Employee Retirement Income Security Act, Boeing’s stock price has been artificially inflated due to Boeing’s cover up of material risks in their 737 MAX passenger jet design.
If you meet the criteria listed above and are interested in discussing a possible case, please fill out the contact form on this page.
What is going on with Boeing stock?
Berger Montague is investigating possible claims against Boeing on behalf of current and former Boeing employees who participated in the company’s Voluntary Investment Plan, investing at least some of their account assets in Boeing stock. For many years, Boeing’s stock price has been artificially inflated.
The Boeing 737 model commercial jet has been the company’s bestselling aircraft for decades, and the Boeing 737 MAX series is the core of Boeing’s growth plans.
In 2011, Boeing announced that new, more fuel-efficient jet engines were going to be retro-fitted in their 737 aircrafts. With the new engines and changed flight control systems, problems occurred during takeoff. Sensors would indicate that the plane was in danger of stalling and force the plane’s nose down. Pilots reported these problems to Boeing.
Boeing thus knew for many years that the 737 MAX faced crucial safety problems but did not publicly disclose them. This left the public unaware of these issues and led to the inflation of Boeing’s stock price.
In the wake of the October 2018 737 MAX crash in Indonesia and the March 2019 Ethiopian crash, Boeing’s share price plunged more than $65 per share, as the public became aware that Boeing had concealed these serious safety issues.
Boeing knew not only that its stock price was artificially inflated but also that many of its Voluntary Investment Plan participants allocated significant portions of their retirement savings to Boeing stock. Despite this knowledge, Boeing did nothing to protect the Voluntary Investment Plan or the plan participants.
If you currently or formerly worked for Boeing, participated in the company’s Voluntary Investment Plan, and invested in its VIP Stock Fund, please fill out the contact form on this page.
What is the Employee Retirement Income Security Act?
The Employee Retirement Income Security Act (known as ERISA) is a federal law that sets standards for most retirement plans in private industry to protect individuals who participate in those plans.
ERISA imposes fiduciary duties—the highest duties known to law—on the people who run retirement plans and gives plan participants the right to sue when those fiduciaries fail to put the participants’ interests first.
Previous ERISA Retirement Settlements
Berger Montague has won recoveries on behalf of retirement plan participants in numerous ERISA retirement plan class action lawsuits:
Diebold v. Northern Trust Investments, N.A.: In August 2015, the U.S. District Court for the Northern District of Illinois approved class action settlements totaling $60 million in cases brought by Berger Montague and other attorneys against The Northern Trust Company and Northern Trust Investments, N.A. on behalf of 401(k) and pension plans that invested in Northern Trust’s collective trusts.
Plaintiffs alleged that Northern Trust breached its fiduciary duty by keeping for itself an excessive amount of the revenue generated by the collective trusts through the practice of securities lending. (Securities lending involves lending securities owned by the collective trusts to short sellers and others, who provide collateral that is then invested, supposedly in the interest of the retirement plans that invest in the collective trusts).
In re: Eastman Kodak ERISA Litigation: In October 2016, the U.S. District Court for the Western District of New York approved a $9.7 million settlement on behalf of the participants and beneficiaries of the Eastman Kodak Employees’ Savings and Investment Plan and the Eastman Kodak Employee Stock Ownership Plan (the “Kodak Plans”).
On behalf of plaintiffs and the participants on the Kodak Plans, Berger Montague charged that the Kodak Plans’ fiduciaries continued to invest in Kodak common stock, even though it was apparent that Kodak was an imprudent investment. The stock price collapsed, and Kodak eventually filed for bankruptcy.
Glass Dimensions v. State Street Bank & Trust Co.: In May 2014, the U.S. District Court for the District of Massachusetts approved a $10 million settlement on behalf of retirement plans that invested in a collective trust established by State Street Bank & Trust Co. under a master securities lending agreement. Berger Montague served as co-lead counsel in this class action case that involved more than 900 retirement plans invested in more than 250 collective investment funds.
Plaintiffs alleged that State Street Bank & Co. breached their fiduciary duties and engaged in prohibited transactions under ERISA by charging excessive fees (50% of all net income derived) for the securities lending services the company provided.
Lequita Dennard v. Transamerica: In October 2016, the U.S. District Court for the Northern District of Iowa approved a $3.8 million settlement on behalf of current and former Transamerica Corp. employees who claimed the company did not live up to its fiduciary duty under ERISA with its 401(k) plan.
Employees alleged that Transamerica breached its fiduciary duty under ERISA—which requires those that administer 401(k) plans to act in the best interest of the plan participants—when it offered investment options that benefitted the company, charging employees excessive investment management and administrative fees.
Do I have to pay to consult with an attorney? No.
We are happy to talk with you about your potential claims free of charge. If we decide to represent you in a lawsuit, we will enter into a written contingent fee agreement with you. A contingent fee agreement means we only get paid if we win, and we will receive our fees from the amount paid by the Defendant in the case.
About Berger Montague
Berger Montague is a full-spectrum class action and complex civil litigation firm. We have been recognized by courts throughout the country for our ability and experience in handling major complex litigation.
Our firm’s Employee Benefits & ERISA Group litigates cases on behalf of employees whose 401(k) and pension investments have suffered severe losses as a result of the breach of fiduciary duties by plan administrators and the companies they represent. Our Employee Benefits & ERISA attorneys have recovered hundreds of millions of dollars in lost retirement benefits for American workers and also favorably structured their retirement plans.