A California appeals court on Friday threw out Pendrell’s potentially $775 million victory against Boeing Co in a lawsuit over launch and satellite contracts between the two companies.
Pendrell Corp, formerly known as ICO Global Communications, had contracted with Boeing to design and build satellites for its planned global communications network, along with launch vehicles, according to the ruling from California’s Second Appellate District. However, Pendrell terminated both contracts in 2004 and accused Boeing of obtaining contract amendments by fraud.
A Los Angeles jury found against Boeing, leading to a $577 million judgment in favor of Pendrell for actual and punitive damages. In a recent regulatory filing, Pendrell estimated the judgment to have grown to approximately $775 million, including post-judgment interest.
However, California’s Second Appellate District on Friday reversed the lower court and entered a judgment in favor of Boeing on all claims.
The undisputed evidence showed Pendrell waived its claim for breach of the satellite contract, the court found, and that there was insufficient evidence that Boeing’s concealments caused Pendrell’s damages under the launch contract.
A Boeing spokesman could not immediately comment, and a Pendrell representative could not immediately be reached for comment.
