Brazilian manufacturer Embraer reports that it will be filing a lawsuit against its erstwhile partner Boeing Co. On April 25, Embraer stated that it received Boeing’s notice of termination of the master transaction agreement (MTA) with Embraer.
The deal would have joined Embraer and Boeing in an agreement to buy 80 percent of Embraer’s commercial aircraft business for $4.2 billion. The agreement did not include Embraer’s executive jet division.
“Embraer believes it is in full compliance with its obligations under the MTA and that it has satisfied all conditions required to be accomplished by April 24, 2020.
“Embraer will pursue all remedies against Boeing for the damages incurred by Embraer as a result of Boeing’s wrongful termination and violation of the MTA.”
The deal originally surfaced in 2018, and was signed in February 2019. Since then, Boeing has suffered setbacks as the 737 Max fleet was grounded due to concerns over the airplane’s stall protection system, and the market for airliners shrank with the COVID-19 pandemic.