Washington:
Boeing’s board of directors will have to face a lawsuit from shareholders more than two fatal crashes that killed hundreds of individuals, a US judge has ruled.
The manufacturer’s 737 MAX was grounded for 20 months worldwide in March 2019 just after 346 individuals died in two crashes — the Lion Air disaster in Indonesia in 2018 and an Ethiopian Airlines crash the following year.
The lengthy ruling stated that “the Board should have heeded but instead ignored” a “red flag” about the aircrafts’ security systems, recognized as MCAS, following the 1st crash.
“The stockholders may pursue the Company’s oversight claim against the board,” Vice Chancellor Morgan Zurn stated Tuesday, dismissing two other claims.
Boeing told the BBC it would “consider next steps”.
The Delaware ruling noted the genuine victims of the crashes have been the ones who died and their loved ones, nonetheless, “corporate law recognizes another set of victims: Boeing as an enterprise, and its stockholders.”
Following the two crashes, the enterprise has faced steep fines.
At the starting of the year Boeing agreed to spend $2.5 billion in fines and settle a criminal charge more than claims they defrauded regulators overseeing the 737 MAX.
Then in May Boeing also agreed to spend a $17 million fine and increase its provide chain and production practices just after installing unapproved gear on hundreds of planes.
Boeing’s 373 MAX aircraft have been only cleared to return to the skies in late 2020, and the firm has also suffered from the collapse of the travel market due to the Covid-19 pandemic.
Boeing did not respond to AFP’s request for comment.
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