Boeing Satellite Launch Venture Sued

Boeing Co. and its partners in a fledgling satellite-launch business have been sued for $500 million by a rival company.

Commercial Space Management Co. Inc. sued Boeing and its partners, claiming that rocket makers RSC-Energia of Russia and NPO-Yuzhnoye of Ukraine were wrong to ally with Boeing because they already had signed an exclusive contract with Commercial Space Management to sell their rockets to foreign buyers.

Boeing is the lead partner in Sea Launch Co., a company it formed with RSC-Energia, NPO-Yuzhnoye and Kvaerner a.s. of Norway to launch satellites from a converted oil drilling rig that will be towed to the South Pacific.

Commercial Space Management is seeking $500 million in damages plus unspecified punitive damages from the partners for breach of contract, fraud and deceit.

The Denver company filed its suit in Los Angeles Superior Court. Sea Launch is based in nearby Long Beach, California.

Commercial Space Management claims it signed exclusive contracts in 1993 with Enerm, a Russian company made up of RSC-Energia, NPO-Yuzhnoye and others, to buy and package launch vehicles for customers worldwide.