Posted on 11/06/21
| News Source: i24
Boeing's 737 MAX plane was grounded for 20 months following two fatal crashes that killed 346 people
Current and former company directors of Boeing Co. on Friday reached a $237.5 million proposed settlement with shareholders over a lawsuit alleging the board’s safety oversight of the 737 MAX aircraft.
Boeing’s best-selling 737 MAX plane was grounded for 20 months following two fatal crashes that killed 346 people in the span of five months from 2018-2019, Reuters reported.
The proposed agreement - which was confirmed by Boeing - will further require the election of an additional board director with aviation/aerospace engineering or product safety oversight expertise within one year.
New York State Comptroller Thomas P. DiNapoli said that Boeing's board "failed in their fiduciary responsibility to monitor safety and protect the company, its shareholders and its customers from unsafe business practices and admitted illegal conduct.”
"It is our hope... that the reforms agreed to in this settlement will help safeguard Boeing and the flying public against future tragedy and begin to restore the company’s reputation,” he added.