(The Center Square) – Ohio Attorney General Dave Yost says Boeing has safety issues costing Ohioans.
Yost sued the aerospace giant on behalf of two Ohio pension funds, claiming a pattern of safety and compliance failures have hurt the companies and its investors.
“The safety failures at Boeing are endangering lives and threatening the financial security of shareholders,” Yost said. “Running a safe, respectable company starts with the people at the top – and it’s time for them to be held accountable.”
The attorney general’s office is representing the Ohio Public Employees Retirement System and the State Teachers Retirement System of Ohio. The lawsuit accuses Boeing board members of breaching their fiduciary duties by failing to oversee the company.
Boeing has been under fire for reportedly rushing production and thus compromising quality. Lawmakers and aviation experts raised concerns about the American aerospace company at two Senate hearings in April.
In January, a door blew off of a Boeing 737 Max 9 while in the air. Later, former CEO David Calhoun said on an earnings call that “we caused the problem,” which was apparently related to missing bolts on the door.
The Department of Justice and the Federal Aviation Administration also investigated Boeing. The FAA said in March after an audit it “found multiple instances where the companies allegedly failed to comply with manufacturing quality control requirements.”
Ohio’s lawsuit also says board members and senior management, including Calhoun, failed to implement adequate safety measures or to address whistleblower concerns about the company’s production processes.
“The failure of Boeing’s directors and officers to implement and oversee Boeing’s safety and compliance functions in good faith led to incalculable damage to Boeing’s relationships with its regulators, customers, lenders, potential employees, and the flying public,” the lawsuit says.
In August, the board hired Robert K. Ortberg as its new president and CEO, replacing Calhoun. The board approved an annual base salary rate of $1.5 million for Ortberg, and an annual incentive award target of $3 million for 2025, as well as a long-term incentive award target of $17.5 million for 2025, according to an SEC filing.
