On March 12, PACA suspended operations of all Boeing 737 MAX aircraft operating in and out of the country's airports until further notice.
The Civil Aviation Administration of China will send experts to join the review committee to assess the security of Boeing's 737 MAX jets.
Chief Executive Dennis Muilenburg and Chief Financial Officer Gregory Smith were also named as defendants.
The 737 MAX, a new variant of the 737 family, is central to Boeing's future in its battle with European rival Airbus SE and the likely workhorse for global airlines for decades.
This showed a stumble in Boeing's deliveries, especially the commercial planes compared to the 184 commercial delivery in Q1 of 2018, 132 of which were new single-aisle 737s.
Richard Seeks, the lead plaintiff, said Boeing's compromises began to emerge after the Ethiopian Airlines crash killed all 157 onboard, five months after the Lion Air crash killed 189.
Boeing's shares were down 1.4 per cent at $369.50 in afternoon trading. The lawsuit seeks damages for Boeing stock investors from January 8 to March 21.
Boeing Co said on Tuesday orders almost halved in the first quarter and the plane maker handed over far fewer aircraft, as it struggles with a worldwide grounding of its best-selling 737 Max jets following two fatal crashes.
The case is Seeks v Boeing Co et al, U.S. District Court, Northern District of Illinois, No. 19-02394.