State Comptroller DiNapoli Statement on Boeing Lawsuit Settlement

 

New York State Comptroller Thomas P. DiNapoli issued the following statement regarding the approval of the settlement of the derivative lawsuit the New York State Common Retirement Fund (Fund) and the Fire and Police Pension Association of Colorado (FPPA) filed against the directors of The Boeing Company. State Comptroller DiNapoli, as trustee of the Fund, and the FPPA were appointed co-lead plaintiffs in the lawsuit.

In a derivative lawsuit, shareholders sue a company’s board of directors on the company’s behalf alleging that the board breached its fiduciary duties. The pension funds’ lawsuit sought damages on behalf of the company and corporate governance reforms, following two mass casualty 737 MAX crashes and the subsequent grounding of the aircraft. Under settlement approved today by the Delaware Chancery Court, Boeing will adopt enhanced safety and oversight protocols including, among other measures, implementing an ombudsman program that will provide a channel for Boeing employees to raise work-related concerns, and adding an additional director with aviation, engineering, or product-safety oversight experience. Boeing will enhance its mandatory safety reporting to its Board of Directors and Aerospace Safety Committee. Finally, Boeing will recover $237.5 million from the directors’ insurers.

“What happened at Boeing led to great tragedy. The settlement approved not only provides for the company to recover the largest monetary settlement in this type of case in the Delaware Courts’ history, but also includes much-needed reforms to enhance safety and oversight at the company. We hope this settlement will help safeguard Boeing and the flying public against future catastrophe and protect shareholders’ long-term investments in the company.”