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Boeing settles nearly all Lion Air 737 MAX crash claims: filing

Published 07/07/2020, 07:29 PM
Updated 07/07/2020, 09:05 PM
© Reuters. FILE PHOTO: The Boeing logo is displayed on a screen, at the NYSE in New York

© Reuters. FILE PHOTO: The Boeing logo is displayed on a screen, at the NYSE in New York

By Eric M. Johnson

SEATTLE (Reuters) - Boeing (NYSE:BA) Co has reached settlement agreements in more than 90% of the wrongful death claims filed in federal court after the 2018 crash of a Lion Air 737 MAX in Indonesia that killed all 189 people on board, a court filing on Tuesday said.

The fatal crash, followed within five months by another 737 MAX jetliner in Ethiopia, led to the worldwide grounding of the best-selling model and a corporate crisis that has included hundreds of lawsuits alleging the jet was unsafe and separate probes by the Justice Department and U.S. lawmakers.

Boeing has been racing to clear a number of remaining hurdles to win U.S. Federal Aviation Administration approval to fly the MAX again commercially, potentially later this year.

In a filing in federal court in Chicago, Boeing said claims relating to 171 of the 189 people on board the crashed jet have been fully or partially settled. That includes 140 of the 150 claims filed in the U.S. District Court for the Northern District of Illinois.

The company did not disclose how much it paid victims' families or estates. In 2019, Reuters reported that some Lion Air cases had been settled for at least $1.2 million per claim.

A Boeing spokesman said the company remains committed to resolving the remaining cases.

"We extend our deepest condolences to the families and loved ones of all those onboard Lion Air Flight 610," the spokesman, Gordon Johndroe, said by email.

"We are pleased to have made significant progress in recent months in resolving cases brought by the victims' families on terms that we believe fairly compensate them."

© Reuters. FILE PHOTO: The Boeing logo is displayed on a screen, at the NYSE in New York

Latest comments

For aerospace companies, management ppl need to be work ground up only then they know from the top and down to single bolts and nuts!! Safety always first !!!!
Well based on my income I would hope my family wouldn't settle for less than 12 million.
I find it astonishing that a great engineering company like BA made a serious miscalculation of this magnitude. They have enough talent within the firm that it shouldn't have.
in most companies, the talents doing all the technical work aren't the ones making calls.
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