$BA: Whistleblower Death Settlement Reached — But $200M MAX Litigation Overhang Persists

Court: SEC

Case: 3-21140

Boeing BA quietly resolved a wrongful death lawsuit tied to John Barnett, a former longtime employee and whistleblower, agreeing to pay at least $50,000 to his mother. Barnett, who had raised safety concerns about Boeing’s production practices, died by suicide in March 2024 while testifying in a retaliation case. The settlement, filed in South Carolina federal court, also resolves outstanding retaliation claims. While this closes one chapter, Boeing still faces the unresolved weight of a $200M settlement with investors related to its handling of the 737 MAX crashes.

• $50,000+ payout to Barnett’s mother in wrongful death settlement.
• Retaliation claims resolved alongside the death-related case.
• Barnett worked 32 years at Boeing, raising red flags on safety practices.
• Stock impact muted, with focus shifting to long-term governance reforms.
• $200M investor settlement over 737 MAX safety disclosures remains an overhang.

Timeline Overview

• Oct 29, 2018 — Lion Air Flight 610 crash tied to MAX MCAS system.
• Mar 10, 2019 — Ethiopian Airlines Flight 302 crash; MAX grounded globally.
• Mar 11, 2019 — FAA grounds all MAX jets; BA stock drops ~10%.
• Apr 2019 — Investor lawsuits allege concealment of safety risks.
• Sep 22, 2022 — Boeing agrees to $200M settlement with SEC/investors.

Allegations Include

• Failure to disclose known MCAS design flaws.
• Misleading safety assurances after the first crash.
• Concealing systemic risks leading to two fatal accidents.

Investor Update

The $200M settlement resolved SEC charges but highlighted deep governance and disclosure failures. With FAA oversight still tight and public trust fragile, investors remain focused on whether Boeing can demonstrate lasting cultural and safety reforms.

You can check more information about it HERE.