When Boeing first bought the El Segundo satellite factory from Hughes, Boeing almost immediately claimed that it overpaid by $1 billion. The facility shed thousands of jobs amid a huge commercial satellite slump.
Today's news on the result of this lawsuit may be the final insult in Boeing's acquisition from Hughes.
Boeing ordered to pay ICO $631M in damagesRESTON, Va. (AP) -- Boeing Co. has been ordered to pay former customer ICO Global Communications Ltd. $631 million in damages after a California court approved a jury verdict against the Chicago-based aerospace company.
The Los Angeles Superior Court backed a jury's decision in October to award $371 million in compensatory damages, and $236 million punitive damages, plus prejudgement interest, ICO said Tuesday.
Boeing will also be required to pay ICO 10 percent interest on the full judgment starting Jan. 2, the company said.
Boeing did not immediately return a call for comment Wednesday morning.
The lawsuit filed by ICO stems from the company's decade-old plan to launch a fleet of satellites that would broadcast video and other services to mobile device users around the world. ICO filed a lawsuit in 2004 seeking $2 billion in damages against Boeing for breach of contract and fraud.
ICO had been under contract with El Segundo, Calif.-based Hughes Electronics Corp. in the mid-1990s to build and launch 12 satellites. Boeing later acquired Hughes in 2000 and inherited the ICO contract, but only finished two satellites.
Leave a comment