Boeing Co. said Friday it is paying $92.5 million to settle a 1997 shareholder class-action suit accusing it of doctoring financial records to conceal the extent of production problems until after its merger with McDonnell Douglas was completed.
The suit was filed following Boeing's announcements that it was implementing production recovery plans that involved temporarily shutting down 747 and 737 Next Generation assembly lines, resulting in a $1.6 billion charge.
The October 1997 statements sent Boeing's stock down sharply. Shareholders said Boeing withheld knowledge of the plans beforehand.
Steve Berman, representing the shareholders, said the settlement affects tens of thousands of shareholders who bought or otherwise acquired Boeing stock from July 21 to Oct. 22, 1997.