Boeing Board Will Have To Face Shareholder Lawsuit Over 737 MAX, Rules Delware Court

Boeing Co BA board will have to face a shareholder lawsuit over allegations that the aircraft maker's directors failed to monitor safety issues before the two 737 MAX jets crashed and lied about the oversight to management, a Delaware judge has ruled, The Wall Street Journal reported on Wednesday.

What Happened: Vice Chancellor Morgan Zurn of Delaware’s Court of Chancery on Tuesday faulted the board for lacking a safety-reporting process and then “turning a blind eye” once a problem emerged, as per the Journal.

The judge on Tuesday let stand one of the lawsuit’s claims while dismissing others, moving it past an initial hurdle.

“Rather than prioritizing safety, defendants lent their oversight authority to Boeing’s agenda of rapid production and profit maximization,” Zurn said.

See Also: Boeing Bleeding Orders To Airbus Due To Unrealistic Pricing, Says Ryanair CEO As Companies End Talks On Aircraft Purchase

Why It Matters: Boeing had sought to dismiss the case before it advanced and can appeal the judge’s ruling. A Boeing spokesman told WSJ that the planemaker would review the judge’s opinion closely as it considered its next steps. 

Price Action: Boeing shares closed 1.33% lower at $211.38 on Wednesday.

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