Newsdeck: Boeing Sued Over Ethiopia Crash as Political Woes Deepen By Bloomberg
The Chicago-based company is under intense scrutiny after two crashes less than half a year apart killed 346 people. The U.S. aerospace giant lost billions of dollars in market value in the days after the Ethiopia crash as nation after nation announced they were barring the aircraft from flying. Even as the company tries to restore confidence in the 737 Max, it’s facing a criminal probe and questions from lawmakers over whether it has too cozy a relationship with its U.S.
“The subject accident occurred because, among other things, Boeing defectively designed a new flight control system for the Boeing 737 MAX 8 that automatically and erroneously pushes the aircraft’s nose down, and because Boeing failed to warn of the defect,” according to the complaint.Boeing is preparing to submit final paperwork to U.S.
Boeing faces the prospect of substantial payouts to the families of passengers if it’s found responsible for both the Indonesia and Ethiopia crashes. But legal experts say the second one could prove even more damaging for the company. That’s because plaintiffs will argue the manufacturer was put on notice by the earlier tragedy that there was something dangerously wrong with its planes that should have been fixed.
“Boeing and the FAA knew about the dangers and they failed to ground the fleet,” said Marks, who also is suing over the Lion Air crash. He said the similarities between the two accidents are “very clear.”
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