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Boeing Settles 90% Of Claims Related To 2018 Lion Air Crash

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Boeing Settles 90% Of Claims Related To 2018 Lion Air Crash

Boeing Co (NYSE: BA) has settled more than 90% of wrongful death claims filed in federal court after a Lion Air 737 MAX aircraft crashed in Indonesia in 2018, killing 189 people. 

What Happened: The Lion Air crash was followed by another MAX plane crashing in Ethiopia in 2019, which led to the grounding of all such planes worldwide. Boeing has been facing multiple lawsuits and is under investigation by the U.S. Justice Department and lawmakers.

The airframer said in a filing in federal court in Chicago that it has settled claims, in full or in part, related to 171 of the 189 people on board the ill-fated Lion Air flight. 

The settlement includes 140 of the 150 claims filed in the U.S. District Court for the Northern District of Illinois.

No disclosure was made by Boeing on how much it paid to the families of the victims. According to Reuters, some cases were settled in 2019 at $1.2 million per claim.

See Also: Here's How Large Option Traders Are Playing Boeing As Order Backlog Shrinks

Why It Matters: It has been alleged Boeing kept the Federal Aviation Administration in the dark about the problems related to the flight control system aboard the MAX jet.

The FAA has completed certification flight testing of the MAX model last week. The agency says it will lift the grounding order only after its experts are satisfied that the aircraft meets the requisite standards.

Boeing shares closed Tuesday's session 4.81% lower at $178.88.

 

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Posted-In: 737 MAX ReutersNews Legal Best of Benzinga

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