Fin24

Boeing ordered to cough up $370m

2008-10-22 08:18

Los Angeles - A Los Angeles jury has ordered Boeing to pay $370m over a contract dispute with a communications company headed by cellular phone pioneer Craig McCaw.

The Superior Court jury reached its decision on Tuesday in favor of ICO Global Communications Holdings, which accused Boeing of breaching a contract to produce satellites.

Virginia-based ICO sued Boeing for around $1.5bn in actual damages. The lawsuit stems from a decade-old plan to launch satellites that would transmit mobile services.

ICO contracted with El Segundo-based Hughes Electronics to build and launch about 12 satellites, but only two of the satellites were finished.

Boeing says it will appeal the decision.

- AP