Out-of-court settlement for US$225 million on Boeing 737 MAX closed

Out-of-court settlement for US5 million on Boeing 737 MAX closed

Boeing’s US shareholders reached a $225 million ($1.24 billion) out-of-court settlement with the aircraft manufacturer’s current and former directors in a case of negligence in the security of the 737 MAX, reported The Wall Street Journal this Thursday (4).

Wanted by the AFP, neither the shareholders’ lawyers nor those of Boeing wanted to comment on the news.

Shareholders accused Boeing board members and several executives, as well as current chairman David Calhoun, of failing to ensure the effective functioning of the 737 MAX’s information and control instruments.

According to the WSJ, claims will be paid by insurers, not board members or executives. Boeing also agreed to hire a mediator to handle internal matters and appoint a board representative with experience in air safety.

The settlement will not require Boeing to admit its negligence on behalf of the defendants in the case, the WSJ added.

The 737 MAX was involved in two accidents: one operated by Lion Air in October 2018 and another by Ethiopian Airlines in March 2019. Both left a total of 346 dead.

Investigations revealed that both incidents were related to the Accident Prevention System (MCAS).

Based on internal documents, shareholders said that proper safety procedures were not implemented on the 737 MAX after the 2018 accident, despite media reports linking the tragedy to MCAS.

Manufactured in 2011 and released in 2017, the 737 MAX was banned from flying in March 2019, until it was declared safe again in November 2020.


You May Also Like

Recommended for you

Immediate Peak