Former satellite operator ICO Global has settled its multi-million dollar lawsuit against Boeing, signalling an end to the four-year saga.
ICO, which is now called Pendrell Corporation, said it had withdrawn its petition for review to the California…
Former satellite operator ICO Global has settled its multi-million dollar lawsuit against Boeing, signalling an end to the four-year saga.
ICO, which is now called Pendrell Corporation, said it had withdrawn its petition for review to the California Supreme Court in connection with its litigation against Boeing.
It had been seeking a review of the California Court of Appeal’s decision on 13 April 2012 to reverse a 2008 California Superior Court ruling, which had awarded it US$603m for breach of contract, fraud and tortious interference.
Instead, its settlement sees Boeing waive its right to appellate court costs, which the manufacturer had indicated would be substantial, as well as paying ICO US$10m.
“As we previously indicated, the likelihood of the California Supreme Court agreeing to hear our case was remote,” explained Bob Jaffe, general counsel of Pendrell.
“Furthermore, we anticipated several years of additional litigation with Boeing relating to its attempt to recover costs from ICO. As a result, we believe this settlement is in ICO’s best interests.”
This initial lawsuit stems from Boeing taking over a US$2bn construction and launch contract for ICO’s 12 Medium Earth Orbit spacecraft. The first satellite was destroyed after the rocket that was carrying it exploded shortly after takeoff. Although a second satellite reached orbit, the remaining constellation was never completed. Litigation ensued, with ICO alleging that Boeing had demanded a further payment of around US$400m to make necessary modifications on the other satellites.
Boeing was unable to comment on the developments at the time of going to press.
ICO’s appeals team was led by law firm Arnold and Porter, while Manatt, Phelps & Phillips was counsel to it during the court case. Boeing was represented by Munger, Tolles & Olson.
Adorno, Yoss, Alvarado & Smith advised ICO’s largest shareholder Eagle River Investments.
