ANALYSIS: Chancery Faces Boeing Again in ‘Repeat Offender’ Suit

A so-called “second generation” Caremark suit against directors of The Boeing Company is presenting the Delaware Court of Chancery with an opportunity to expand director oversight liability. This time, the court will dissect Boeing’s continued systemic failures after corporate governance reforms were made and red flags had ostensibly been triaged.

This “repeat offender” litigation features a shareholder plaintiff alleging that prior corporate misconduct, followed by reforms and then a subsequent new failure, should lead to stiffer liability.

After hearing arguments on the Boeing directors’ motion to dismiss earlier this month, Vice Chancellor Morgan T. Zurn will have to decide whether ...