On Wednesday, Boeing (NYSE:BA) was sued for allegedly stealing trade secrets from Wilson Aerospace, a Colorado-based family-run tools company. The lawsuit mainly focuses on the collaboration between the two companies from 2014 to 2016 for the latter to safely attach engines to NASA’s Space Launch System (SLS).
In response, Boeing said the company will “vigorously” defend itself against the lawsuit, as it is filled with “inaccuracy and omissions.”
Details on the Boeing Lawsuit
Filed in a Seattle federal court, the lawsuit includes ten claims against Boeing. The claims of the specialty aerospace tools inventor include copyright infringement, misappropriation and theft of trade secrets, and fraud. The lawsuit involves multiple custom-designed tools that were created for Boeing during the contractual period.
The complaint stated, “Boeing has captured billions of dollars in revenue because of the infringement of Wilson’s trade secrets, “and must turn over” all revenues and profits Boeing has obtained as a result.”
Wilson Aerospace claims Boeing used its tools for NASA projects, including the International Space Station and its SLS rocket, which helped the jet maker earn billions in contract awards and fees from the government. The lawsuit revolves around the Fluid Fitting Torque Device (FFTD) product, which Wilson used to resolve an issue related to attaching the rocket’s engines to SLS “with the precise amount of torque.”
The counterfeit Boeing versions, created by downloading proprietary information and cutting off communications with Wilson, led to leaks that “put lives at risk” due to mismatched components and inferior products.
Is Boeing a Good Stock to Buy?
Of the ten top analysts covering Boeing, eight have rated it a Buy and two have a Hold rating. Overall, the consensus rating of the best-performing analysts is a Strong Buy, with an average price target of $242 indicating an upside of over 14%.
On Wednesday, analysts at J.P. Morgan, Jefferies, and Goldman Sachs reiterated their Buy ratings on Boeing.
Despite a reported 787 issue, Goldman Sachs analyst Noah Poponak reaffirmed his Buy rating on the stock with a $291 price target.
The reported issue is that Boeing identified a non-conformance in a fitting for the 787 horizontal stabilizers manufactured by the company in a Salt Lake City production facility. Boeing will have to inspect all 90 of the impacted Dreamliners before delivery. The analyst believes that this is a simple issue and the company will be able to resolve it quickly.
