Boeing Board to face investor lawsuit over fatal crashes

Written by on September 8, 2021

Boeing’s board of directors must face a lawsuit from shareholders over two fatal crashes involving its 737 Max plane, a US judge has ruled.

Morgan Zurn said the first crash was a “red flag” about a key safety system on the aircraft “that the board should have heeded but instead ignored”.

He said the real victims were those who died and their families but investors had also “lost billions of dollars”.

In his ruling the Delaware judge said: “While it may seem callous in the face of [the families’] losses, corporate law recognizes another set of victims: Boeing as an enterprise, and its stockholders.

“Stockholders have come to this court claiming Boeing’s directors and officers failed them in overseeing mission-critical airplane safety to protect enterprise and stockholder value.”

On Tuesday, Vice Chancellor Zurn dismissed some of the investors’ claims, including one regarding a decision to award former chief executive Dennis Muilenburg a $60m retirement package after he was fired6, the judge said another claim about board member oversight could go ahead. Shares in the plane maker slumped following the accidents and are yet to fully recover.

A Boeing spokesperson said: “We are disappointed in the court’s decision to allow the plaintiffs’ case to proceed past this preliminary stage of litigation.

Credit: BBC

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