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Boeing directors now subject of shareholder lawsuit concerning 737 MAX 8

While Boeing Co. is the subject of numerous claims from victims’ families over the fatal Lion Air and Ethiopian Airlines crashes which both involved the now-grounded Boeing 737 MAX, a new lawsuit filed in Delaware – Kirby Family Partnership LP v. Dennis Muilenburg, 2019-0907, Delaware Chancery Court (Wilmington).

The lawsuit claims that Boeing Co. directors were careless in their oversight of the troubled 737 MAX 8 jet and that they failed to react promptly after the two crashes. It also claims the directors missed repeated red flags during development of the aircraft’s automated flight-control system, while also delaying investigation of potential design flaws after the first crash involving a Lion Air jet. The lawsuit alleges that in a rush to get the 737 MAX to market, Boeing failed to properly test the new flight-control system or train pilots adequately.

Beyond the consequent grounding of the 737 MAX 8 jet, the suit also claims the board’s actions hurt the company “through loss of credibility in the marketplace, a damaged reputation and billions in potential business costs and liability,” according to Kirby, which says it has owned Boeing shares since 2018.

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