Boeing shareholders are suing the board, alleging 'careless' handling of the 737 Max development and the crisis that followed (BA)

REUTERS/Lindsey Wasson/File Photo

• Boeing's board members were careless in their oversight of the Boeing 737 Max, leading to a "loss of credibility in the marketplace, a damaged reputation and billions in potential business costs and liability," a new shareholder lawsuit alleges.
• The suit, first reported by Bloomberg, was filed in Delaware Chancery Court, by the Kirby Family Partnership LP.
• The lawsuit appeared to be the first by shareholders targeting the company's board.
• Sign up for Business Insider's transportation newsletter, Shifting Gears, to get more stories like this in your inbox.
• Visit Business Insider's homepage for more stories.

A new shareholder lawsuit is accusing Boeing's board members of ignoring repeated red flag's in the 737 Max's development.

The suit, filed by the Kirby Family Partnership LP — which claims to have owned Boeing shares since 2018 — also claims that Boeing's board of directors failed to properly investigate role of the plane's automated MCAS system after the first crash, Lion Air Flight 610 in Indonesia in October 2018, according to a Bloomberg report. The second crash — Ethiopian Airlines Flight 302 — occurred five months later.

See the rest of the story at Business Insider

NOW WATCH: Why Tesla's Model 3 received top crash-test safety ratings

See Also:

• Boeing's 737 officially lost the title of world's most popular airplane. Airbus' competitor just passed it in sales.
• Ethiopian Airlines buried the remains of crash victims — but didn't give families enough notice to attend the funeral
• United is the latest airline to push the Boeing 737 Max's return back, despite Boeing's increasing confidence about the plane's recertification

SEE ALSO: Here's the complete history of the Boeing 737 Max, the plane that's been grounded since 2 crashes killed 346 people 5 months apart

from Feedburner https://ift.tt/2NWQ6iX