Insider Brief:
- Boeing has sued Virgin Galactic.
- The lawsuit claims that Richard Branson’s company has refused to pay more than $25 million in fees and continued to store data that it was contractually obligated to dispose of.
- In response, a Virgin Galactic spokesperson has refuted the claims, claiming that the lawsuit is based on incorrect facts and legal interpretations.
- Image credit: Virgin Galactic
Boeing has taken legal action against Richard Branson’s Virgin Galactic, claiming more than $25 million in unpaid fees and accusing the company of mishandling confidential information.
Boeing and its subsidiary Aurora Flight Sciences filed the lawsuit last week as reported by Proactive Financial News. Virgin Galactic had enlisted Aurora in 2022 to design and construct two new ‘mothership’ aircraft to replace its current VMS Eve aircraft, with the initial delivery scheduled for 2025.
Boeing and Aurora assert that Virgin Galactic ceased payment for design services after Aurora determined that Virgin Galactic’s desired aircraft couldn’t be produced within the allocated budget and timeline.
The lawsuit alleges that around $26.4 million remains outstanding despite repeated requests for payment.
Moreover, Boeing and Aurora claim that Virgin Galactic has declined to return trade secrets, including specialized equations utilized for aircraft performance modelling and data from tests of a composite material.
The lawsuit states that these equations enable Boeing and Aurora to achieve exceptionally accurate aircraft stability and control modelling, surpassing common industry standards. Despite requests for the destruction of documents containing these equations, Virgin Galactic maintains it has intellectual property rights to them under the project agreement.
In response, a Virgin Galactic spokesperson has refuted the claims, claiming that the lawsuit is based on incorrect facts and legal interpretations. The company intends to vigorously defend its position.
If you found this article to be informative, you can explore more current space industry news, exclusives, interviews, and podcasts.
