Boeing Shareholders are Suing the Board, alleging 'CARELESS' Handling of the 737 MAX Development and the Crisis that Followed
Boeing rushed to get the plane to market
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November 19, 2019 - by David Slotnick for businessinsider.com
- A new shareholder lawsuit alleges that Boeing's board members were careless in their oversight of the Boeing 737 MAX, leading to a "loss of credibility in the marketplace, a damaged reputation and billions in potential business costs and liability."
- The suit, first reported by Bloomberg, was filed in Delaware Chancery Court by the Kirby Family Partnership LP.
- The lawsuit appeared to be the first by shareholders targeting the company's board.
The suit, filed by the Kirby Family Partnership LP — which says it has owned Boeing shares since 2018 — also accuses Boeing's board of directors of failing to properly investigate role of the plane's MCAS software in the October 2018 crash of Lion Air Flight 610 in Indonesia, according to a Bloomberg report.
That was followed in March by a second crash, involving Ethiopian Airlines Flight 302, prompting a worldwide grounding of the 737 MAX.
The lawsuit claims Boeing rushed to get the plane to market, consequently failing to test the plane or...
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