NEW YORK (NWN) — Insurers for several current and former Boeing board members will pay more than $230 million to settle a lawsuit that asked directors to address safety warning signs before the company’s two Max jetliners crashed. was accused of failing.
Boeing and the directors did not admit to wrongdoing in the agreement, which was filed in a Delaware court on Friday. The deal still needs a judge’s approval.
The shareholder lawsuit was filed by the administrators of the New York State Employees Retirement Fund and the Colorado Pension Fund for firefighters and police officers. He filed the lawsuit after the Boeing 737 Max jets crashed in 2018 and 2019, killing 346 people.
The lawsuit accused the directors of overseeing then-CEO Dennis Muilenburg and failing to properly look after the interests of shareholders in Max’s growth. Boeing tried to have the lawsuit dismissed, but a judge overruled the move in September.
According to documents filed Friday, the insurer will pay Boeing $237.5 million, minus fees and expenses, for the directors. None of the directors – nor Boeing – would be required to pay anything.
Boeing agreed to add a board member with a background in aviation or aerospace engineering or product safety and create a Safety Ombudsman Office for at least five years.
Boeing fired Muilenberg in late 2019 and replaced him with David Calhoun, who was on the board at the time. Both are defendants in the shareholder lawsuit along with several other current and former directors.
Of the 13 directors on the board at the time of the accident, eight would have left by January. Six new directors have been added.
In January, Chicago-based Boeing agreed to a $2.5 billion deal with the US Department of Justice to avoid criminal prosecution for misleading regulators about Max’s safety. Most of the money will go to the airlines that bought the jets.