Spirit AeroSystems Files Lawsuit Against Texas

Troutman Pepper

[co-author: Stephanie Kozol]*

Spirit AeroSystems, Inc. (Spirit), a subsidiary of a company that produces fuselages for Boeing’s 737 jets, has filed a lawsuit against Texas in response to the attorney general’s (AG) recently initiated investigation into the company’s alleged manufacturing issues — which the AG says led to midair emergencies earlier this year. The lawsuit, filed on May 1, asserts that the state’s probe is unconstitutional and violates Spirit’s rights to be free from unreasonable searches.

Spirit’s lawsuit stems from an investigation the AG initiated on March 28. The investigation was initiated with a “Request to Examine” — asking Spirit to turn over documents produced from January 1, 2022 to the present, pertaining to communications with investors and Boeing regarding various flaws in parts, and corrective steps the company took. The request also seeks documents and internal discussions regarding Spirit’s public facing claims about workforce diversity and the company’s “employee demographics for race, national origin, sexual orientation, and age.”

In its lawsuit, Spirit asserts that its Dallas factory is unrelated to the manufacture of fuselages and that the Request to Examine statute, through which the state’s probe was initiated, does not provide a mechanism for Spirit to seek judicial review of the probe. This lack of judicial review — Spirit argues — violates its Fourth and Fourteenth Amendment rights to be free from unreasonable searches and seizures. Spirit is seeking three forms of relief: 1) a declaratory judgment that Texas’ Request to Examine statute is unconstitutional; 2) a preliminary injunction to stop its operation until a final ruling on the merits; and 3) a permanent injunction.

Takeaway

The lawsuit challenges the state’s authority to conduct examinations of companies in Texas. On one hand, a win for Spirit could potentially mean the invalidation of the Request to Examine statute. On the other hand, a victory for the state on this issue will leave the statute intact and available for future inquiries.

*Senior Government Relations Manager

DISCLAIMER: Because of the generality of this update, the information provided herein may not be applicable in all situations and should not be acted upon without specific legal advice based on particular situations.

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