Documents released this Friday show that current and former company directors have reached a proposed settlement of US$237.5 million with shareholders to resolve related lawsuits regarding the board’s safety oversight of the 737 MAX aircraft.During 2018-19, two consecutive crashes of Boeing 737 MAX aircraft occurred within 5 months, resulting in 346 deaths. Subsequently, Boeing’s best-selling aircraft was grounded for 20 months and was put back into service after the company made major improvements to its software and training.
The proposed agreement submitted to the Court of Justice of Delaware later this Friday has been confirmed by Boeing. The agreement will require the selection of one person with aviation/aerospace, engineering or product safety oversight in the next year Additional board directors with expertise.
As the main plaintiffs, New York State Attorney General Thomas P. DiNapoli and the Colorado Fire and Police Pension Association stated: “If the settlement is approved, it will be the largest monetary compensation in a lawsuit filed in a Delaware court. The lawsuit accuses the directors. Failure to prevent the risk of injury”.
P. DiNapoli stated that Boeing’s board of directors “failed to fulfill its fiduciary duty of overseeing safety and protecting the company, its shareholders, and customers from unsafe business practices and recognized illegal practices. We hope that over time, The reforms agreed in this settlement will help protect Boeing and the flying public from future tragedies and begin to restore the company’s reputation.”
The agreement requires that Boeing’s board of directors must always have at least three directors with safety-related experience. According to the proposal, the proposal must be approved by a judge before it can become a final proposal.
According to the settlement agreement, Boeing will amend its articles of association to require that the positions of chief executive officer and chairman of the board of directors be separated, and an ombudsman program for at least five years will be established to provide work-related proposals for Boeing employees engaged in aircraft certification work for the Federal Aviation Administration. The way to the problem.
The settlement also requires Boeing to provide an annual public report describing the safety-related improvement measures implemented by the aircraft manufacturer from MAX. The documents show that financial penalties will be paid by the insurance company to Boeing, minus up to $29.7 million in legal fees and shareholder attorney expenses.
Boeing confirmed the settlement and stated that since the crash, Boeing has taken major actions to consolidate and strengthen our commitment to aviation safety. It added that “reconciliation is an additional supervision and governance reform based on these actions, which will further promote the safety and quality of our work”.
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