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In May of 1997 after Boeing announced their merger with the McDonnell Douglas Corporation, there was a manufacturing breakdown happening within the Boeing organization. Boeing began to have a shortage in parts, employee overtime reached an all time high, and warning signs of the company’s well being were starting to become evident. Boeing then formed a special team to study the crisis and reported “Our production system is broken.” Boeing made a decision that would change the company forever as they decided to change the numbers to show profits even though profits were significantly down. Boeing Chairman, Philip M. Condit, made a decision to keep this information away from the investors and out of the public eye until after the merger. This decision was made due to Mr. Condit did not wanting anything to stop the merger from taking place. One of the public relation managers at Boeing tried to announce that Boeing was experiencing problems on September 6th and then again on September 13th. These dates were chosen as the funerals for Princess Diana and Mother Teresa took place on these specific dates. This was done with the hope that the Boeing story would be over looked to a grieving public, but it did not happen. On October 22nd of 1997, Mr. Condit publicly announced the company’s massive production problems, and that they were being forced to write off 2.6 billion dollars, the largest in the company’s history.
Overnight Boeing shares fell 8% wiping out almost 4.3 billion dollars in value. While investors’ began to take a hard look at company numbers, Boeing lost years of creditability and stocks fell another 12% by October 27th. Many people were affected by Boeing’s cover up include the invertors and Boeing employees. Many of the investors lost money due to the cover up because the stocks decreased by 20% in October of 1997. Workers at Boeing lost

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