2:52 a.m. Dec. 17, 2021
- By Steve Gelsi
Boeing reaches proposed settlement to shareholder lawsuit stemming from 737 MAX fatalitiesBoeing on Friday notified shareholders of a proposed $237.5 million settlement stemming from the two fatal crashes in 2018 of the Boeing 737 MAX. The stockholder derivative action was brought against Boeing's board of directors in a Delaware court in 2019 by plaintiffs Thomas P. DiNapoli, comptroller of New York and the New York State and Local Retirement System and the Fire and Police Pension Association of Colorado. Under the settlement, Boeing's insurers will make a monetary payment of $237.5 million, minus any attorneys' fees and expenses to Boeing, and Boeing shall implement corporate governance measures. The plaintiffs charged the company's directors for being liable for losses incurred by the company and its shareholders because they did not exercise proper oversight over the company's activities. After the crashes, many countries, including the United States, ordered the planes grounded until changes could be made. Boeing shares fell 0.6% in premarket trades.