In court documents filed Wednesday in federal court in Chicago, the Chicago aerospace giant admitted that its software was to blame for the destruction of Ethiopian Airlines Flight 302, which lost control shortly after takeoff in March 2019.
The plane nosedived into a barren patch of land about 40 miles from Addis Ababa. No one survived the crash.
At the time, it was the second crash to involve a Boeing 737 Max aircraft in six months. After the Ethiopian crash, U.S. authorities grounded the 737 Max until Boeing could fix the plane’s software.
The agreement does not involve monetary compensation to the families as of Wednesday, according to court records. But it does enable victims’ families to pursue individual claims in U.S. courts instead of their home country.
The crash killed people of 35 nationalities.
Under the agreement with Boeing, the victims' families also agreed to dismiss claims against Rosemount Aerospace, which made sensors for the 737 Max, and Raytheon's (RTX) - Get Raytheon Technologies Corp Report Rockwell Collins, the parent of Rosemount and a key supplier for the Max, Reuters reported.
Boeing last month said it delivered fewer-than-expected jets in the third quarter, with the total number of deliveries coming in at 85 vs. 79 in the prior quarter.
Deliveries of 737 Max planes totaled 66, up from 50 in the second quarter, Boeing said.
At last check, shares of Boeing were up 0.2% at $219.01. Year to date the stock is up 7.8%.