Boeing Cleared In 737 MAX Fraud Trial As Jury Rejects LOT Polish Airlines' Claims Over Deadly Crash-Linked System
On Friday, a federal jury in Seattle ruled in favor of Boeing Co (NYSE:BA), rejecting claims that the aerospace giant concealed critical safety information tied to the 737 MAX system linked to two fatal crashes.
Boeing Wins 737 MAX Fraud Case
LOT Polish Airlines had accused Boeing of withholding details about changes to the aircraft's flight-control system, known as MCAS, before the jets were delivered last decade, Reuters reported.
The airline argued the undisclosed system contributed to the 2018 and 2019 737 MAX crashes that killed hundreds of people and triggered a nearly 20-month worldwide grounding of the aircraft.
LOT sought $153 million in damages, saying the grounding caused significant financial losses for the carrier.
After a two-week trial in U.S. District Court in Seattle, jurors deliberated for roughly three hours before finding Boeing not guilty of fraud.
Boeing, LOT Respond To Verdict
"We are gratified by the jury's verdict in our favor today," a Boeing spokesperson said following the decision.
LOT acknowledged the outcome but suggested the legal fight may not be over.
The airline said it would not comment further because the legal process "may not yet be concluded," leaving open the possibility of an appeal.
The ruling marks another major legal victory for Boeing as it continues to navigate the fallout from the 737 MAX crisis.
Boeing Eyes Major China Comeback With Potential 750-Jet Deal
Meanwhile, earlier this month, China agreed to purchase 200 Boeing aircraft in a deal that President Donald Trump said could eventually grow to as many as 750 jets.
The agreement could help Boeing rebuild its position in China, where rival Airbus SE (OTC:EADSY) (OTC:EADSF) has steadily gained market share in recent years.
Price Action: BA shares closed Friday down 0.27% at $219.02 and slipped another 0.24% to $218.50 in after-hours trading, according to Benzinga Pro.
According to Benzinga Edge Rankings, BA ranks 46th in the Momentum ranking, with its price trend remaining positive over the short and long term, even as medium-term performance shows some weakness.
Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.
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