3
Co-Lead Plaintiffs are Boeing stockholders. Co-Lead Plaintiff Thomas P.
DiNapoli is Comptroller of the State of New York, Administrative Head of the New
York State and Local Retirement System, and Trustee of the New York State
the form of “Hr’g Tr. —” refer to the transcript of the June 25, 2021 oral argument on
Defendants’ Motion, available at D.I. 169.
Prior to filing this action, Plaintiffs pursued and received books and records pursuant
to 8 Del. C. § 220. Plaintiffs received over 44,100 documents totaling over 630,000 pages.
It is reasonable to infer that exculpatory information not reflected in the document
production does not exist. See Teamsters Local 443 Health Servs. & Ins. Plan v. Chou,
2020 WL 5028065, at *24 & n.314 (Del. Ch. Aug. 24, 2020).
The Amended Complaint cites documents Plaintiffs obtained under Section 220.
The parties do not contest that under the incorporation by reference doctrine, I may
consider those documents and Defendants’ exhibits in support of the Motion to determine
whether the Amended Complaint has accurately referenced their contents in support of its
claims and in pleading demand futility. Reiter on Behalf of Cap. One Fin. Corp. v.
Fairbank, 2016 WL 6081823, at *5–6 (Del. Ch. Oct. 18, 2016).
In briefing, Plaintiffs did not assert that any of the exhibits Defendants submitted
would be improper to consider on the Motion. See D.I. 155 at 1 n.1 & 42–44. At argument,
Plaintiffs’ counsel suggested that the Court should not consider Dennis Muilenburg’s
“Lion Air Talking Points” for the Board’s November 23, 2018 call, submitted as
Defendants’ Exhibit 86. See Hr’g Tr. 125–27. Specifically, Plaintiffs’ counsel argued that
“it is on its face a draft set of talking points that Mr. Muilenburg had”; and that “it’s not
incorporated by reference” because Plaintiffs “didn’t plead that they were recited . . . to the
board,” “it’s not a board meeting,” and “[i]t’s not a presentation,” but “could have been.”
Id. 125. But Plaintiffs pled that “[t]alking points for the call circulated among Muilenburg
and other executives expressed skepticism about media accounts of MCAS’s role in the
crash.” Am. Compl. ¶ 224. Plaintiffs’ brief in opposition to the Motion also relied on the
talking points. See D.I. 155 at 26. Defendants submitted Exhibit 86 in reply. See Defs.’
Ex. 86. I therefore consider Defendants’ Exhibit 86 on the Motion.
At Defendants’ urging, I have considered their proffered exhibits to determine if
they show that Plaintiffs “misrepresented their contents” or if any inference that Plaintiffs
seek is unreasonable. Flannery v. Genomic Health, Inc., 2021 WL 3615540, at *8 (Del.
Ch. Aug. 16, 2021) (citing Voigt v. Metcalf, 2020 WL 614999, at *9 (Del. Ch.
Feb. 10, 2020)). Through that lens, I find they do no such work for Defendants; in fact,
Defendants’ exhibits support Plaintiffs’ allegations.