Boeing Execs Cleared in B737-9 Safety Incident Lawsuit

A Delaware judge has dismissed a lawsuit against Boeing executives over a safety incident involving an Alaska Airlines-operated B737-9 in January 2024. The plaintiff, a group of pension funds holding Boeing shares, alleged that the directors breached their fiduciary duties by ignoring safety concerns and prioritizing profits.

The court found that the board's actions did not amount to bad faith, as Delaware law does not hold corporate directors liable for general risks that materialize. The judge also noted that much of the information reported to the board was unrelated to the causes of the door plug blowout or regulatory costs.

This decision comes on the heels of a federal appeals court's decertification of a shareholder class action accusing Boeing of prioritizing profits over safety and making misleading statements about its safety practices. The court found that shareholders failed to demonstrate how damages could be calculated on a classwide basis.