Boeing 2012 Annual Report Download - page 116

104
VIP and its participants, and were undisclosed to participants. The plaintiffs further alleged that defendants
breached their fiduciary duties in violation of §502(a)(2) of ERISA, and sought injunctive and equitable
relief pursuant to §502(a)(3) of ERISA. During the first quarter of 2010, the Seventh Circuit Court of Appeals
granted a stay of trial proceedings in the district court pending resolution of an appeal made by Boeing in
2008 to the case’s class certification order. On January 21, 2011, the Seventh Circuit reversed the district
court’s class certification order and decertified the class. The Seventh Circuit remanded the case to the
district court for further proceedings. On March 2, 2011, plaintiffs filed an amended motion for class
certification and a supplemental motion on August 7, 2011. Boeing’s opposition to class certification was
filed on September 6, 2011. Plaintiffs’ reply brief in support of class certification was filed on September 27,
2011. The court has stated its intent to issue rulings on the amended motion for class certification and the
alternative motion to proceed as a direct action for breach of fiduciary duty and then stay the case until it
is determined if an appeal of the class certification order is filed. As a result, on September 19, 2012 the
district court issued an order denying Boeing’s motions for summary judgment as premature pending class
determination. The Company cannot reasonably estimate the range of loss, if any, that may result from
this matter given the current procedural status of the litigation.
Civil Securities Litigation
On November 13, 2009, plaintiff shareholders filed a putative securities fraud class action against The
Boeing Company and two of our senior executives in federal district court in Chicago. This lawsuit arose
from our June 2009 announcement that the first flight of the 787 Dreamliner would be postponed due to
a need to reinforce an area within the side-of-body section of the aircraft. Plaintiffs contended that we were
aware before June 2009 that the first flight could not take place as scheduled due to issues with the side-
of-body section of the aircraft, and that our determination not to announce this delay earlier resulted in an
artificial inflation of our stock price for a multi-week period in May and June 2009. On March 7, 2011, the
Court dismissed the complaint with prejudice. On March 19, 2012, the Court denied the plaintiffs’ request
to reconsider that order. On April 12, 2012, plaintiffs filed a Notice of Appeal, and on April 25, 2012, Boeing
filed a Notice of Cross-Appeal based on the district court’s failure to award sanctions against the plaintiffs.
Oral argument in the Seventh Circuit Court of Appeals will be held on February 25, 2013. We expect a
decision by the end of the second quarter of 2013.
In addition, plaintiff shareholders filed three similar shareholder derivative lawsuits concerning the flight
schedule for the 787 Dreamliner that closely tracked the allegations in the putative class action lawsuit.
Two of the suits were filed in Illinois state court and were consolidated. The remaining derivative suit was
filed in federal district court in Chicago. Following the March 2012 decision confirming the dismissal of the
class action complaint, the plaintiffs in these derivative lawsuits agreed to voluntarily dismiss their lawsuits
without prejudice. Plaintiff in the federal case filed a Notice of Voluntary Dismissal on June 26, 2012, and
the court dismissed the case on June 28, 2012. Plaintiffs in the consolidated state case filed a Notice of
Voluntary Dismissal on July 3, 2012, and the court dismissed the case on August 24, 2012.
Note 22 – Segment Information
We operate in five principal segments: Commercial Airplanes; Boeing Military Aircraft (BMA), Network &
Space Systems (N&SS), and Global Services & Support (GS&S), collectively Defense, Space & Security;
and Boeing Capital. All other activities fall within the Other segment or Unallocated items and eliminations.
See page 54 for the Summary of Business Segment Data, which is an integral part of this note.
The Commercial Airplanes segment develops, produces and markets commercial jet aircraft and provides
related support services, principally to the commercial airline industry worldwide.
Our BMA segment is engaged in the research, development, production and modification of manned and
unmanned military aircraft and weapons systems for global strike, including fighter and combat rotorcraft
aircraft and missile systems; global mobility, including transport, tanker, rotorcraft and tilt-rotor aircraft; and