Southwest Airlines Co. agrees to settle a shareholder lawsuit that grew out of safety violations at the carrier and will pay the investors' lawyers $3.5 million.
Southwest disclosed the proposed settlement in a regulatory filing made Friday. A hearing on the deal is scheduled for Dec. 7 in state district court in Dallas.
The carrier, based in Dallas, agreed to adopt several reforms related to its safety and maintenance programs, including compliance with federal regulations. It also agreed to pay $3.5 million for the plaintiff's legal fees and expenses, if the court approves.
In exchange, the plaintiffs agreed to drop claims against Southwest and several directors and executives, including CEO Gary Kelly and former CEO Herb Kelleher.
Copyright AP - Associated Press
