About half the states in the United States have introduced so-called universal demand laws that make it harder for aggrieved shareholders to sue company directors and hold managers personally liable for decisions that have harmed the company.
One such lawsuit by Boeing shareholders resulted in current and former directors of the airline agreeing to pay it US$225 million over claims they had failed to properly oversee matters related to the safety of the relatively new 737 MAX after crashes in 2018 and 2019 that killed 346 people.
The payment went to the company rather than the shareholders who sued, allowing them to benefit indirectly along with other shareholders.
