Shareholders may pursue 737 MAX claims against Boeing board, court rules

A Delaware judge ruled on Tuesday that Boeing's board of directors must face a lawsuit from shareholders over two fatal 737 MAX crashes that killed 346 people in less than six months. Vice Chancellor Morgan Zurn ruled Boeing stockholders may pursue some claims against the board, but dismissed others. Zurn's ruling in the Court of Chancery said the first of the two fatal 737 MAX crashes was a "red flag" about a key safety system known as MCAS "that the board should have heeded but instead ignored." Boeing said late Tuesday it was "disappointed in the court's decision to allow the plaintiffs' case to proceed past this preliminary stage of litigation. We will review the opinion closely over the coming days as we consider next steps." The US FAA lifted a flight ban on the 737 MAX in November after a 20-month review following the fatal crashes in 2018 and 2019. In January, Boeing was charged by the Justice Department with 737 MAX fraud conspiracy and agreed to a deferred prosecution agreement and settlement worth more than $2.5b.<br/>