Boeing settles with funds that sued after 737 Max crashes

Nov 5, 2021, 4:23 PM | Updated: Nov 6, 2021, 5:23 am

NEW YORK (AP) — Insurers for several current and former Boeing board members will pay more than $230 million to settle a lawsuit that accused the directors of failing to address safety warning signs before two of the company’s Max jetliners crashed.

Boeing and the directors did not admit wrongdoing in the settlement, which was filed Friday in a Delaware court. The deal still needs a judge’s approval.

The shareholder lawsuit was filed by administrators of New York state employee retirement funds and a Colorado pension fund for firefighters and police officers. They sued after crashes of Boeing 737 Max jets in 2018 and 2019 killed 346 people.

The lawsuit accused the directors of failing to properly look out for the interests of shareholders in overseeing then-CEO Dennis Muilenburg and development of the Max. Boeing tried to get the lawsuit dismissed, but a judge rejected the move in September.

Insurers for the directors will pay $237.5 million to Boeing, minus fees and expenses, according to documents filed Friday. None of the directors — nor Boeing — will 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’s office for at least five years.

Boeing fired Muilenburg 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.

Eight of the 13 directors who were on the board when the crashes occurred will have left by January. Six new directors have been added.

In January, Chicago-based Boeing agreed to a $2.5 billion settlement with the U.S. Justice Department to avoid criminal prosecution for misleading regulators about safety of the Max. Most of the money will go to airlines that bought the jets.

Copyright © The Associated Press. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.

AP

Associated Press

US says SkyWest employee subjected to sexual harassment

DALLAS (AP) — The federal government is suing SkyWest Airlines on behalf of a former employee who says co-workers sexually harassed her, including asking her for sex and making explicit comments about rape in her presence. The U.S. Equal Employment Opportunity Commission said in a lawsuit filed Wednesday that SkyWest discriminated against the woman by […]
13 hours ago
Associated Press

Court: BIA owes damages for officer impregnating woman

HELENA, Mont. (AP) — The U.S. Bureau of Indian Affairs can be held responsible for damages awarded to a Montana woman who became pregnant after an on-duty BIA officer used the threat of criminal charges to coerce her into having sex, the Montana Supreme Court has ruled. The woman, identified by the initials L.B. in […]
13 hours ago
Rapper A$AP Rocky, right, appears in a Los Angeles Superior courtroom on Wednesday, Aug. 17, 2022, ...
Associated Press

A$AP Rocky pleads not guilty to firearm assault charges

LOS ANGELES (AP) — Rapper A$AP Rocky has pleaded not guilty to felony assault with a firearm charges stemming from a 2021 confrontation in Hollywood. He is accused of drawing a gun and firing it twice in the direction of a former friend during an argument in Hollywood in November 2021. He pleaded not guilty […]
13 hours ago
Associated Press

Companies plan $2.6B investment in major Alaska oil project

ANCHORAGE, Alaska (AP) — Two oil and gas companies have announced plans to invest $2.6 billion into developing a major oil field on Alaska’s North Slope. Australia-based Santos and Spain-based Repsol made the announcement, which was lauded by state political leaders, the Anchorage Daily News reported. Santos has a 51% stake in the Pikka project, […]
13 hours ago
Associated Press

Bombing at Kabul mosque kills 10, including prominent cleric

ISLAMABAD (AP) — A bombing at a mosque in the Afghan capital of Kabul during evening prayers on Wednesday killed at least 10 people, including a prominent cleric, an eyewitness and police said. There was no immediate claim of responsibility for the attack, the latest to strike the country in the year since the Taliban […]
13 hours ago
FILE - The FBI's unsealed search warrant for former President Donald Trump's Mar-a-Lago estate in P...
Associated Press

Trump supporters’ threats to judge spur democracy concerns

WASHINGTON (AP) — Hundreds of federal judges face the same task every day: review an affidavit submitted by federal agents and approve requests for a search warrant. But for U.S. Magistrate Judge Bruce Reinhart, the fallout from his decision to approve a search warrant has been far from routine. He has faced a storm of […]
13 hours ago

Sponsored Articles

...
Day & Night Air Conditioning, Heating and Plumbing

Ways to prevent clogged drains and what to do if you’re too late

While there are a variety of ways to prevent clogged drains, it's equally as important to know what to do when you're already too late.
...
Day & Night Air Conditioning, Heating and Plumbing

Most plumbing problems can be fixed with regular maintenance

Instead of waiting for a problem to happen, experts suggest getting a head start on your plumbing maintenance.
...
Carla Berg, MHS, Deputy Director, Public Health Services, Arizona Department of Health Services

Update your child’s vaccines before kindergarten

So, your little one starts kindergarten soon. How exciting! You still have a few months before the school year starts, so now’s the time to make sure students-to-be have the vaccines needed to stay safe as they head into a new chapter of life.
Boeing settles with funds that sued after 737 Max crashes