The Boeing board “publicly lied” about monitoring airplane safety following two deadly 737 Max crashes, according to court records. Directors also allegedly failed to assess airplane safety and fell short in demanding or expecting safety reports from management.
Delaware Chancery Court Judge Morgan Zurn used these and other determinations to allow oversight claims against Boeing directors to move forward yesterday in a closely watched case that claims board members breached their duties.
“The narrow question before this Court today is whether Boeing’s stockholders have alleged that a majority of the Company’s directors face a substantial likelihood of liability for Boeing’s losses,” Zurn wrote in the Sept. 7 opinion. “This may be based on the directors’ complete failure to establish a reporting system for airplane safety, or on their turning a blind eye to a red flag representing airplane safety problems,” she added. “I conclude the stockholders have pled both sources of board liability.”Agenda – ‘Board Publicly Lied’ — Case Against Directors Moves Forward