Jury clears Boeing of fraud in $153 million 737 Max lawsuit by LOT Polish Airlines

Investing Australia
A U.S. jury found Boeing not guilty of fraud in a civil lawsuit filed by LOT Polish Airlines over the 737 MAX, dismissing claims of withheld flight-control software information.

Summary

A federal jury in Seattle ruled in favor of Boeing on Friday, clearing the aerospace manufacturer of fraud in a civil lawsuit brought by LOT Polish Airlines. The Warsaw-based carrier had accused Boeing of defrauding it by intentionally withholding critical information regarding a significant change to the single-aisle aircraft's flight-control software. The plane's automated system, known as the Maneuvering Characteristics Augmentation System (MCAS), was later linked to two fatal 737 MAX crashes involving Lion Air in 2018 and Ethiopian Airlines in 2019. The disasters triggered an unprecedented 20-month global grounding of the aircraft type by international aviation regulators. LOT Polish Airlines had sought $153 million in financial damages, asserting that the protracted grounding caused severe operational disruptions and substantial losses across its commercial fleet. The jury returned the verdict following a two-week trial and approximately three hours of deliberation. "We are gratified by the jury's verdict in our favor today," a Boeing spokesperson said following the decision. LOT Polish Airlines issued a statement acknowledging the legal outcome but indicated that it may pursue further legal options. "As the legal process may not yet be concluded, LOT will not comment further on the details of the proceeding at this stage," the carrier stated. The verdict follows years of legal fallout for Boeing related to the MAX program. In 2021, the manufacturer entered into a $2.5 billion deferred prosecution agreement with the U.S. Department of Justice to resolve criminal charges of conspiracy to defraud the Federal Aviation Administration over the aircraft's evaluation.

(Source:Investing Australia)

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