Tag Archives: Boeing Company Case Study

A Case Study on The Boeing Company Derivative Class Action

In 2006, plaintiffs in a derivative class action against the directors of The Boeing Company (“Boeing”), led by their counsel Labaton Sucharow, achieved a landmark settlement establishing unique and far-reaching corporate governance standards relating to ethics compliance, provisions that will also obligate Boeing to contribute significant funds over and above base compliance spending to implement the various prescribed initiatives.

In particular, Boeing’s Board of Directors will expressly undertake, through amendment of Boeing’s Corporate Governance Principles, reasonable oversight and monitoring responsibility for the implementation of Boeing’s ethics and compliance program and the effectiveness of those processes on an annual basis. The Audit Committee Charter also will be amended, including to provide for the Audit Committee to undertake responsibility for reporting no less than annually to the Board with respect to the implementation and effectiveness of Boeing’s ethics and compliance program. Click here to read more…

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A Case Study on Boeing Company Derivative Class Action

Let’s just say the 21st century didn’t launch smoothly for the financial markets. To be sure, in the wake of Enron and WorldCom, the public was dizzied and disenchanted with each new story of corporate misconduct. That dismay was particularly severe when news broke about the procurement scandal involving the Boeing Company. One of the largest manufacturing and defense contractors in the world, Boeing was entrusted with some of the most significant and sensitive government contracts. It was a darling of US enterprise, a poster child of industrial ingenuity. Nevertheless, in 2006, the company paid $615 million to settle government investigations into allegations that the company’s top leadership had failed to properly oversee operations. Click here to read more…

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