Executives Sued One After Another Over Boeing 737 Max Crash... Settle for $200 Million

Boeing's Boeing 737 Max. Photo by Reuters

[Asia Economy Reporter Song Seung-seop] Former and current Boeing executives sued over the Boeing 737 Max aircraft crash are expected to settle with the plaintiffs for $225 million (approximately 267.7 billion KRW).

According to major foreign media on the 4th (local time), the insurer contracted with Boeing executives and corporate liability insurance is expected to pay the settlement to the plaintiffs (shareholders). As part of the settlement conditions, an ombudsman to handle internal issues will be hired, and a director with expertise in aviation safety will also be appointed.

The Boeing 737 Max crashed twice in 2018 and 2019. A total of 346 people lost their lives in those accidents. In response, shareholders including the New York State Common Retirement Fund and the Colorado Fire and Police Pension Association filed lawsuits citing inadequate safety inspections.

However, it is reported that the settlement will not include any admission of fault by former and current executives such as former Boeing CEO David Calhoun. Calhoun was a member of the board at the time of the accidents.

The settlement proposal is scheduled to be submitted to a court in Delaware, USA, the following day. Its effectiveness will require the judge's approval.

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