In re the Boeing Company Derivative Litigation

In recent years, Boeing, once a fabled manufacturing and aerospace giant, has come under fire. Crashes involving its 737 MAX aircraft have called into question the degree to which the board has been keeping its eye on the quality/safety ball. The quality problems plaguing the business hit the company’s stock price hard. If the company’s problem were simply due to a lack of care, stockholder plaintiffs might be out of luck. In the case that follows, stockholder plaintiffs brought a derivative claiming that the company’s woes were due to a lack of oversight by the board and this lack of oversight should generate some financial liability for board members.