Boeing Co, the well-known airplane manufacturer, directors have reached a $237.5 million settlement with shareholders to settle a lawsuit regarding the board’s safety oversight of the 737 MAX aircraft.
Boeing’s best selling plane, 737 MAX, was grounded for 20 months after two fatal during five months back in 2018- 2019 that 346 people have died., Boeing’s plane was returned to service after the company made considerable software and training improvements.
The proposed settlement, which was confirmed by Boeing and is being filed in Delaware Chancery Court, will require the election of an additional board director with aviation/aerospace, engineering, or product safety oversight expertise within one year.
Under the settlement, Boeing will have to revise its bylaws to require the separation of the CEO and Board chair positions, create for at least five years an ombudsperson program to provide Boeing employees conducting airplane certification work for the Federal Aviation Administration with a way to raise work-related concerns. The settlement would require Boeing to provide annual public reports on safety-related enhancements implemented by the planemaker since the MAX air disasters as well.
Boeing confirmed the settlement and said “Boeing has taken significant actions to reinforce and strengthen our commitment to aviation safety” since the crashes. Regarding the settlement, it added, “builds on those actions with additional oversight and governance reforms that will further advance safety and quality in the work that we do.”