Boeing to pay over $28 million to family of 737 MAX crash victim: hit to company’s reputation and finances

A federal court in Chicago has ordered Boeing to pay more than $28 million to the family of Shikha Garg, who was killed in the 2019 Ethiopian Airlines Flight 302 crash. The ruling is the first among a series of lawsuits related to two tragedies that claimed 346 lives and underscores the serious financial and reputational consequences for the aerospace giant.

Boeing has agreed to pay Garg’s family $35.85 million, including accrued interest, and will not appeal the verdict. The aircraft manufacturer has already settled over 90% of the lawsuits related to the crashes, paying billions of dollars through legal settlements and other compensation mechanisms.

The deadly 737 MAX crashes occurred in Indonesia in October 2018 (Lion Air Flight 610) and in Ethiopia in March 2019 (Ethiopian Airlines Flight 302). In both cases, automated flight control systems played a key role, and investigations revealed that the aircraft was defectively designed and Boeing failed to warn passengers and the public about potential dangers.

Garg’s attorneys noted that the verdict “provides public accountability for Boeing’s wrongful conduct.” For the company, this represents not only a financial blow but also a significant reputational risk, coming on top of billions of dollars already paid in compensation and ongoing litigation.