Boeing has been threatened with legal action by relatives of the passengers killed in a recent Ethiopian Airlines crash, according to a report in The Herald Sun.

The aircraft manufacturer is facing a multi-million dollar lawsuit as a result of the tragic accident, which occurred in Lebanon earlier this year, leaving 83 passengers and seven crew members dead.

The flight was operated with a Boeing 737-800 aircraft.

“We have filed a lawsuit in Chicago, Illinois, against the Boeing Company,” confirmed Manual von Ribbeck from Ribbeck Law, a US firm that has been hired by a number of the relatives.

Ribbeck added that initial analysis of the data gathered so far showed a severe mechanical failure was probably behind the tragedy. "Our aviation expert believes that simple pilot error could not have brought down the plane," he said.

Ethiopian Airlines’ insurers have reportedly offered a compensation package of US$20,000 per passenger, although Ribbeck stated he would be seeking in excess of $1 million for each victim represented by his firm. "There is no reason why the same insurance companies pay 10 times more elsewhere than what they are offering in Lebanon," he said. "There is no reason why a Lebanese is worth less."