Aviation Litigation
Podhurst Counsel Warns Boeing Settlement Falls Far Short for Ethiopian Airlines
January 2021 – Attorneys representing Ethiopian Airlines in the aftermath of the tragic 737 MAX crash that killed 157 passengers and crew, including Flight ET302, have advised the carrier not to accept Boeing’s proposed settlement. The lawyers warned that the offer “grossly shortchanges” the airline and urged Ethiopian to pursue its claims for substantial economic and punitive damages in U.S. courts.
The guidance comes after Boeing admitted criminal fraud in the certification of the 737 MAX’s flight control software, providing legal leverage for a significant claim. Attorneys emphasized that the settlement offer—reportedly between $500 million and $600 million, much of it in non-cash concessions—falls far below the airline’s assessed losses, which independent experts value at no less than $1.8 billion.
Steven Marks of Podhurst Orseck, who represents families of Flight ET302 victims in separate litigation, noted that Boeing often attempts to resolve claims with foreign customers outside the U.S., sometimes offering settlements that fail to reflect the full scope of damages. He emphasized that pursuing litigation in U.S. courts allows for maximum recovery, particularly in light of Boeing’s admitted misconduct.
The attorneys’ advice aims to ensure that Ethiopian Airlines receives compensation commensurate with the airline’s financial losses and reputational damage, while holding Boeing accountable for its admitted role in the tragic crash.