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Home / Business / Boeing investors settle suit over 737 MAX safety oversight

Boeing investors settle suit over 737 MAX safety oversight

The proposed settlement agreement is expected to be filed in the coming days in Delaware Chancery Court, and is subject to approval by a judge
Representational image.
Representational image.
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Reuters   |   Seattle, Washington   |   Published 06.11.21, 06:33 AM

Boeing investors have reached an agreement with current and former company officers to settle a lawsuit over the safety oversight of the 737 MAX, two people familiar with the matter said on Thursday.

 The proposed settlement agreement is expected to be filed in the coming days in Delaware Chancery Court, and is subject to approval by a judge, the people said. It would likely include provisions to increase internal safety oversight, they said. One of the people added that the monetary portion of the agreement could be around $250 million, and would be paid by insurers.

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 A Boeing spokesperson declined to comment. Lawyers representing the plaintiffs did not immediately respond to a request for comment. 

The settlement agreement was reported earlier by the Wall Street Journal. In an amended complaint unsealed in February, New York State Comptroller Thomas DiNapoli, who heads the state pension fund, and other investors argued that Boeing’s board had breached its fiduciary duties and acted with gross negligence by failing “to monitor the safety of Boeing’s 737 MAX airplanes”.

The lawsuit, also filed in Delaware Chancery Court, alleges that the board did not develop any tools to evaluate and monitor airplane safety until after 737 MAX crashes in Ethiopia and Indonesia killed 346 people in five months, and the fleet was grounded.  Reuters

 In March, Boeing asked the Delaware court to throw out the shareholders’ lawsuit, saying the board had engaged in “robust and well-established” oversight of jet’s development.



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