Southwest Airlines has reached a $3.5 million settlement with investors who filed a lawsuit. Investors filed a lawsuit in August 2008, a few months after the FAA proposed a civil penalty for failing to comply with an Airworthiness Directive (AD) that required repetitive inspections of certain fuselage areas to detect fatigue cracking.
The investors, including Carbon County, Pennsylvania, and Employee Retirement System, contended that Southwest officials breached their fiduciary duties by allowing the airline to fail to meet FAA safety standards.
AboutLawsuits.com reports that a hearing is scheduled for December 9 before state District Judge Carlos Cortez for approval of the settlement. (AboutLawsuits.com)