In City of Livonia Employees Retirement System v. Boeing Co., City sued Boeing on behalf of all persons who bought Boeing stock in a certain time period on the basis that the company was overly optimistic about the time schedule for the new 787 aircraft. When problems with the plane developed, the stock fell ten percent. Suit claimed that company executives made false statements about the plane, so committed securities fraud. The appeals court held that Boeing was not misleading in its forecasts about its financial future so was not liable to investors who lost money when things turned out worse than expected.

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The appeals court held that Boeing was not misleading in its forecasts about its financial future so was not liable to investors who lost money.

In City of Livonia Employees Retirement System V