Boeing agrees to pay US$225 million to settle shareholder suit over 737 Max crashes

Baku, November 5, AZERTAC

Boeing has agreed to pay about US$225 million to settle a shareholder lawsuit that claimed the company’s directors failed to monitor safety issues related to the crashes of two 737 MAX planes, according to BERNAMA.

According to The Wall Street Journal newspaper on Friday, citing informed sources, the agreed payments will reportedly be transferred to the group’s accounts out of the director’s insurance funds.

As part of the settlement, Boeing also decided to hire an ombudsman to deal with the company’s internal affairs, and intends to appoint a person with wide aviation security experience to the board of directors.

The proposed settlement is expected to be approved by Delaware’s Court of Chancery, which was filed with the lawsuit in February.

Two Boeing 737 MAX passenger airlines crashed, one in Indonesia in October 2018 and the other in Ethiopia in March 2019, killing a combined 346 people. The use of the 737 MAX was suspended worldwide. Boeing admitted that in both cases, there was a malfunction in the maneuverability enhancement system before the planes crashed.

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