The current and former directors of Boeing Co. have reached an agreement of about 225 million dollars to settle a lawsuit of the shareholders against them.
The shareholders claimed that Boeing’s board had failed to successfully oversee safety issues related to the 737 MAX aircraft, The Wall Street Journal reported in a report on Thursday, citing sources who have received information about the this issue.
Under the proposed arrangement, Boeing agreed to hire a mediator to manage internal affairs and appoint a board member with experience in aviation security, according to the same press release.
Boeing declined to comment.
In September, a Delaware judge rejected a company request to dismiss the lawsuit, ruling that Boeing’s board must deal with the shareholders’ lawsuit over the two tragic plane crashes that killed 346 people in in less than six months.
The financial part of the settlement will be paid by the directors’ insurers to the company, according to the same publication, citing sources familiar with the deal.
The settlement is expected to be submitted to the Delaware courts today and is not expected to include admission of wrongdoing by executives, including Boeing CEO David Calhoun, according to the same publication.
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Source From: Capital
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