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Boeing files breach of contract suit against Worldwide Trust Group after military product agreement goes left

By Charmaine Little | Apr 26, 2019

ST. LOUIS (Legal Newsline) – Boeing is seeking damages from a Kuwait-based company over allegations it breached their consultant agreements regarding the sales of defense products and services.

On April 18, The Boeing Co. sued Worldwide Trust Group (WTG) and other related entities in the U.S. District Court for the Eastern District of Missouri over allegations of breach of contract.

The suit states Boeing and WTG started working together more than a decade ago after Boeing hired WTG to help with selling military defense items to allies in the U.S. and Middle East. They signed on five consultant agreements where they came to terms on the structure of their commission in 2006, the suit states. The plaintiff alleges the structure detailed the Boeing defense products by country that WTG would receive commission for, as well as the commission rates for each item. 

In 2017, Boeing ended its lengthy relationship with WTG when it did not renew the agreement. Boeing alleged that is when WTG “assumed an aggressive posture towards Boeing, demanding additional payments that WTG did not earn that have no basis in the consultant agreements,” according to the lawsuit. 

The suit states WTG requested more than $2 billion for work it purportedly did in Saudi Arabia and the United Arab Emirates. Boeing alleged it never agreed to pay WTG commissions for either of those places.

“Boeing and WTG never agreed that WTG would earn commissions for sales outside of Kuwait and Qatar,” the lawsuit stated. “Nor did Boeing agree that WTG could participate in any other Boeing business opportunities.”

Boeing is seeking a declaratory judgment that it does not owe WTG any extra money and for damages for WTG’s alleged breach of the consultant agreements.

Deadly crashes have plagued Boeing's reputation lately, and stockholders are now suing the company.

Boeing is represented in the WTG matter by attorneys from Dowd Bennett in St. Louis.

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The Boeing Company U.S. District Court for the Eastern District of Missouri

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