Boeing Tentatively Settles 737 MAX Crash Lawsuits

• The crashes of Ethiopian Airlines Flight 302 and Lion Air Flight 610, caused by an automated flight control system issue, led to a global grounding of Boeing's best-selling 737 MAX jet
• Boeing has paid out billions of dollars through lawsuits, a deferred prosecution agreement, and other payments related to the two accidents
• Boeing accepted legal responsibility for the accidents and committed to 'fully and fairly compensate' families, while respecting their right to pursue claims through court trials

Boeing Settles 737 MAX Crash Lawsuits

Key Development:

Boeing has reached tentative settlements with Manant Vaidya, a Canadian man who lost six family members in the 2019 Ethiopian Airlines Flight 302 crash. The settlements were finalized late Tuesday, just as a jury had been selected for trial in U.S. District Court in Chicago. Financial terms were not disclosed.

Case Details:

The settlements cover three of Vaidya's relatives: his parents (Pannagesh and Hansini Vaidya) and sister (Kosha Vaidya). Boeing had previously settled in 2025 for the deaths of Kosha's husband and their two children, who also perished in the crash.

Broader Context:

Ethiopian Airlines Flight 302 crashed in March 2019, five months after Lion Air Flight 610 went down in the Java Sea. An automated flight control system contributed to both 737 MAX crashes, which collectively killed 346 people. The disasters led to a worldwide grounding of Boeing's best-selling aircraft and resulted in significant financial and reputational damage.

Financial Impact:

Boeing has now settled more than 90% of civil lawsuits related to both accidents, paying out billions of dollars through settlements, a deferred prosecution agreement, and other compensation mechanisms.

Company Statement:

Boeing expressed deep condolences and reiterated its commitment to "fully and fairly compensate the families of those who were lost," while acknowledging families' rights to pursue claims through court trials.

Market Implications:

These ongoing settlements represent a continued financial burden for Boeing as it works to resolve legacy issues from the 737 MAX crisis while attempting to restore its reputation and operational stability in the commercial aviation sector.