High Court Rejects Boeing Crash Appeal

Boeing Co. lost a U.S. Supreme Court bid to avoid paying $19 million over the 1991 crash of an Army Chinook helicopter in Saudi Arabia.

The court refused to hear Boeing’s argument that a contract clause shielded it from having to pay damages for product defects. The government blamed a defective gear for the crash. Boeing earlier paid $41 million to resolve other claims.

The government sued under the False Claims Act. Justice Department lawyers said though Boeing was protected from having to pay damages under the contract, that didn’t shield the company from damage claims under federal laws such as the anti-fraud act.

Boeing shares fell 18 cents to $34.22 on the New York Stock Exchange.