Episode 215 — Tom Fox and Michael Volkov Discuss the Board Governance Implications of the Boeing 737 MAX Safety Scandal
The Boeing 737 MAX scandal is a troublesome and disturbing case where corporate board oversight and responsibility was lacking. The implications of the board’s failure resulted in the killing of innocent passengers and the grounding of Boeing’s 737 MAX. Add to that a $2.5 billion settlement, a criminal case against a Chief Technical Pilot, and continuing safety and technical problems, and you have recipe for continuing disaster at Boeing.
The Delaware Chancery Court’s recent decision denying Boeing’s motion to dismiss shareholder derivative claims outlines a devastating picture of Board governance failures relating to Boeing’s response to the Lion Air crash in October 2018 and the Ethiopian Airlines crash in March 2019.
In this Episode, Tom Fox and Michael Volkov discuss the implications of this recent decision.