(Reuters) – Boeing Co. current and former executives have reached a proposed $ 237.5 million deal with shareholders to resolve a lawsuit over the board's safety oversight of the 737 MAX aircraft, documents released on Friday show.
After two deadly 737 MAX crashes in the course of five months in 2018-19 that killed 346 people, Boeing's best-selling plan lay dormant for 20 months and went back into operation after the company made significant software and training improvements.
The proposed agreement, which was to be submitted to the Delaware Chancery Court late on Friday and confirmed by Boeing, will require the election of an additional board member with expertise in aviation / aviation, engineering or product safety oversight within one year.
New York State Comptroller Thomas P. DiNapoli and the Fire and Police Pension Association of Colorado, de leading plaintiffs, said that the settlement, if approved, would be the largest monetary recovery in a lawsuit
The Boeing Board of Directors "failed in its fiduciary duty to monitor security and protect the company, its shareholders and its customers from unsafe business practices and recognized unlawful conduct"; in DiNapoli. "It is our hope, in the future, that the reforms agreed in this agreement will help protect Boeing and the flying public from future tragedies and begin to restore the company's reputation."
The agreement requires Boeing's board to always have at least three board members with security-related experience, according to the proposal, who must be approved by a judge to be final.
Under the settlement, Boeing would amend its bylaws to require the separation of CEO and chairman positions, establishing for at least five years an ombudsman program to provide Boeing employees performing aircraft certification work for the Federal Aviation Administration with a way to address work-related issues.
The settlement would also require Boeing to provide annual public safety reports. -related improvements made by the aircraft manufacturer since the MAX aviation disasters.
The financial penalty is to be paid by the insurance companies to Boeing, the documents show, minus up to $ 29.7 million in legal fees and expenses for the shareholders' lawyers.
best interest, according to the settlement. [1