Bulletin
Investor Alert

The Wall Street Journal Archives | Email alerts

Sept. 25, 2020, 4:04 p.m. EDT

In lawsuit, Boeing board accused of failing to oversee responses to two fatal 737 MAX crashes

new
Watchlist Relevance
LEARN MORE

Want to see how this story relates to your watchlist?

Just add items to create a watchlist now:

  • X
    Boeing Co. (BA)

or Cancel Already have a watchlist? Log In

By Andrew Tangel and Andy Pasztor

Boeing Co.’s board is accused of failing to properly oversee management’s responses to two fatal 737 MAX crashes and the plane’s safety problems in a shareholders’ lawsuit that cites internal company documents.

The suit, filed earlier this month in a Delaware state court, claims former Chief Executive Dennis Muilenburg misled what the plaintiffs portray as a largely passive board. Directors also allegedly were preoccupied by negative news stories, failing to press management over specific MAX engineering problems and skipping meetings focused on safety, according to the 142-page lawsuit.

The lawsuit, an earlier version of which was filed June 30, is heavily redacted but offers a rare boardroom glimpse into the MAX crisis, which has cost Boeing billions of dollars before the pandemic forced it to lay off thousands of employees and slash production of its commercial jets. Delaware law gave plaintiffs access to more than 44,000 internal company documents.

A Boeing /zigman2/quotes/208579720/composite BA -1.01% spokesman said the company believes the suit lacks merit and will seek to have it dismissed later this year. Before the crashes that took 346 lives, the spokesman added, Boeing had protocols in place requiring board-level reports on the 737 MAX and other design, development and safety topics. He noted the lawsuit says the board repeatedly engaged executives after the first crash.

An expanded version of this story appears on WSJ.com

Popular stories from WSJ:

President Again Declines to Say He Will Accept Election Result, Questions Reliability of Ballots

Opinion: The Truth About People of Praise

Palantir Expected to Be Valued at Nearly $22 Billion in Trading Debut

/zigman2/quotes/208579720/composite
US : U.S.: NYSE
$ 167.36
-1.71 -1.01%
Volume: 10.02M
Oct. 23, 2020 4:00p
P/E Ratio
N/A
Dividend Yield
0.00%
Market Cap
$94.47 billion
Rev. per Employee
$660,961
loading...

Get news alerts on Boeing Co. — or create your own.
This Story has 0 Comments
Be the first to comment
More News In
Industries

Story Conversation

Commenting FAQs »
Link to MarketWatch's Slice.