Boeing’s directors must face an investors’ lawsuit accusing them of failing to properly oversee development of the 737 Max line of planes that were involved in two fatal crashes within a six-month period starting in 2018. Delaware Chancery Judge Morgan Zurn threw out some claims against Boeing’s board, but said Boeing shareholders produced enough evidence to justify pursuing claims that directors missed a “red flag” about the 737 Max’s safety issues in the first crash in October 2018. That incident raised issues about a flight-control system “that the board should have heeded but instead ignored,” the judge said in her 102-page decision. Boeing’s board didn’t move to gain greater oversight over quality and safety until a second Max crashed in Ethiopia in March 2019, according to a complaint filed by the New York State Common Retirement Fund and the Fire and Police Pension Association of Colorado. But the board failed to focus on safety even before the first crash, the investors claim.
from Engineering News | Home https://ift.tt/3hcXN2x
