Settlement approved between investors and Boeing executives over MAX crashes

A US judge approved the settlement agreement signed between investors and Boeing board members over the 737 MAX problems. The total amount negotiated is USD 237.5 million.

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In a lawsuit filed in Delaware court, the investors accused the company’s board members of «failing to adequately supervise the design» of the Boeing 737 MAX, which, as a result of the model’s defects, led to the Lion Air and Ethiopian Airlines crashes. As a result, 346 people lost their lives and the model was grounded for almost two years.

According to the Seattle Times, the investors filed a lawsuit on behalf of Boeing. While the lawsuit holds company executives responsible, the entire cost will be borne by insurers.

Thomas DiNapoli, who represents two investment funds – plaintiffs – said the settlement includes the implementation of safety reforms. «We hope this agreement will help prevent future catastrophes and protect shareholders’ long-term investments,» he said. The agreement, which was finalized last November, was approved on Wednesday 23 February.

Among other changes, it will implement internal procedures for employees to raise concerns about aircraft design without fear of retaliation, and require at least one member of the company’s board of directors to have industry experience.

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Boeing and two of its subcontractors are also facing lawsuits from relatives of passengers who died in the 2018 and 2019 crashes. One of the plaintiff families asked that Boeing CEO David Calhoun and former CEO Dennis Muilenburg be added as defendants in the lawsuit.

See also: American Airlines will convert 30 Boeing 737 MAX options into firm orders and defers 787 deliveries