Boeing HQ
The press continues to report negative stories about Boeing. Today, there are stories recapping how events led to the current situation, labor-management issues, unhappy customers, the Starliner launch being delayed yet again, Boeing’s CEO exiting a Board, and two on potential lawsuits that could become problematic in the near future.
- Boeing’s turbulent descent: The company’s scandals & mishaps explained – Miami Herald
- Boeing must face worker’s claim over shouting match with manager – Bloomberg Law
- Boeing’s troubles are spilling over to its airline customers – Washington Post
- Departing Boeing CEO Calhoun to exit Caterpillar’s Board as well – BNN
- Boeing’s 1st Starliner astronaut launch delayed again to May 6 – Space
- After midair blowout, passengers want Boeing and Alaska Air to ‘notice’ them: Seattle Times
- 2 firms seek to lead Boeing 737 MAX safety investor suit – Law360
The Bottom Line
With the deferred prosecution agreement now moot, Boeing can be criminally charged on safety issues and civil lawsuits. With the DOJ re-opening its criminal investigation after the 737 MAX crashes, charges could be forthcoming against some current and former Boeing employees. On the civil front, some law firms are vying to represent shareholders who lost money after the 737 MAX crashes. Success in the courtroom could cripple Boeing’s ability to invest in the future, as Boeing’s shares fell by nearly 75% after the crashes and during the pandemic, remaining about 50% of their peak value. A judgment in the shareholder’s favor could wipe out Boeing’s balance sheet.
The Alaska Airlines incident was the trigger that violated the deferred prosecution agreement only two days before it expired. The incident itself could also become costly, as those passengers are looking to be ‘noticed.’ Boeing has always had a strong legal department, and that may become even more pivotal to the firm’s future.
