A Florida couple sued the CEO of Titanic tourism company OceanGate Expeditions, accusing him of deceiving them about their trip to the wreck and refusing to refund their $210,258 when they complained.
Marc and Sharon Hagle, who made their fortune in commercial real estate, are known for their philanthropy and spirit of adventure: in March 2022, they were on Blue Origin’s fourth passenger spaceflight and became the first married couple to become space tourists. SNL star Pete Davidson was supposed to be with them but pulled out.
“One of our personal goals in life is not to be sitting around in a rocking chair at 100 years old and saying, ‘I wish I would have done that,'” said Marc, 74.
During a trip to the South Pole in 2016, they decided their next adventure would be underwater. In 2017, they were announced as one of the first customers of OceanGate, which was founded in 2009 by Seattle-born aviator and businessman Stockton Rush, now 61.
But they never got to start their journey, and in February of that year they sued Rush, accusing him of selling the adventure even though they knew it wasn’t going to schedule, and refusing to refund their money.
OceanGate’s submersible, the Titan, is currently missing with five people on board after losing communications during a dive to the wreck of the Titanic, some 12,500 feet below the Atlantic.
A frantic search and rescue operation is underway to locate and recover the ship before its oxygen supply is depleted for 96 hours.
Marc Hagle, 74, and his wife Sharon, 73, flew into space on Blue Origin’s fourth voyage in March 2022. They wanted to use OceanGate to visit the Titanic wreck and paid in 2017, but sued for fraud in February of that year
This is the latest sighting of the Titan submersible, which was launched on Sunday. It can be seen in a photo shared by Hamish Harding’s company. He and the four others on board remain missing
OceanGate Expeditions is one of the few companies offering these tours. Tickets cost up to $250,000.
Who is Stockton Rush?
Seattle-born Rush, 61, founded OceanGate Expeditions in 2009 — after unsuccessfully trying to buy explorer and businessman Steve Fossett’s submersible after the adventurer died in a plane crash in 2007.
As a young man, Rush was more interested in outer space than the deep sea: at 19, he became the world’s youngest jet transport pilot and qualified at the United Airlines Jet Training Institute.
For the next three years he flew for Saudi Arabian Airlines during the summer holidays from his aerospace engineering degree at Princeton.
Beginning in 1984, he worked in the US Air Force on the F-15 and anti-satellite missile programs with the goal of eventually joining the space program.
Rush earned an MBA from Berkeley and went on to work for several companies specializing in sonar, underwater technology and radar.
Stockton Rush, CEO of OceanGate
He built a Glasair III experimental aircraft, which he flew regularly, and his own two-person Kittredge K-350 submersible.
Rush always intended to take tourists to Titanic: in 2017, he said he plans to do hydrothermal vent trips, deep-sea canyon trips, and underwater battlefield tours.
He then hoped to work in oil and gas exploration.
In 2018, the Manned Underwater Vehicles Committee of the Marine Technology Society, a 60-year-old trade group, warned that the company’s “current “experimental” approach” could lead to problems that could “range from minor to catastrophic.”
The company also fired David Lochridge, head of marine operations for the Titan Project, after he disagreed with his call for the submersible to undergo more stringent safety testing, including “tests to prove its integrity.”
The company also decided against ‘classifying’ boats, an industry-wide practice whereby independent inspectors ensure vessels meet recognized technical standards.
The expedition’s participants include billionaire Hamish Harding, CEO of Action Aviation in Dubai, and Shahzada Dawood, 48, a UK-based board member of the Prince’s Trust charity, and his son Sulaiman Dawood, 19.
Rush is believed to have been on board the ship that disappeared Sunday, along with PH Nargeolet, a veteran of the French Navy.
The Hagles claim that Rush, a Princeton-educated engineer and pilot with an MBA from Berkeley, traveled to their home in Winter Park, a suburb of Orlando, to convince them to take a stake in his company.
The submersible he wanted to use was then called Cyclops 2 and has since been renamed Titan.
“During their meeting on September 27, 2017, Rush made several misstatements to plaintiffs about material facts, including, without limitation: (a) as to the development and testing status of Cyclops 2 at that time, (b) that Cyclops 2 would do so Be ready to dive on the Titanic by June 2018,” reads the suit given to The Daily Beast.
“(c) If the plaintiffs had any questions or concerns about the integrity of Cyclops 2 and/or the expedition’s schedule in the event of a delay, they could seek, and would receive, a full refund of all monies paid with No. Questions were asked, and (d) Plaintiffs’ deposits and all future payments of Plaintiffs would be held in a special escrow account held by Customer separate from his or OceanGate’s funds.’
They claim the trip has been postponed three times by a year due to testing requirements and unspecified “equipment failures”.
They said their money wasn’t held in a separate account where they could get it back, as promised.
The company reportedly told the Hagles they could join a mission to Titanic’s sunken hull in 2021, but have not received a refund.
They argue that Rush violated state laws on fraud and unfair and deceptive practices.
The Hagles are seeking a refund of their money, as well as attorneys’ fees and other compensation for their pain.
“Given the willful, wanton and egregious nature of Rush’s conduct, plaintiffs reserve the right to seek damages here,” the complaint reads.
Asked about the suit, Marc Hagle told The Daily Beast: “My thoughts are with the owners of Oceangate, the people on the sub, both the crew and the guests.”
“And we hope for a miracle and that everyone gets home safe.”
“I think the briefs speak for themselves.”
When questioned about the case, OceanGate said: “Our entire focus is on the welfare of the crew and every step possible will be taken to bring the five crew members back safely.”
On Tuesday, it emerged that OceanGate’s safety record had been questioned by an industry body.
A 2018 letter to Rush obtained by The New York Times warned that the company’s “current ‘experimental’ approach” could lead to problems that “ranged from minor to catastrophic.”
Marine industry leaders sent a letter to OceanGate CEO Stockton Rush (pictured), who is currently missing with the ship, urging him to be careful
It was sent out by the Committee on Manned Underwater Vehicles of the Marine Technology Society, a 60-year-old trade group dedicated to promoting and educating the public about marine technology.
However, it is unclear whether any staff member or Rush himself responded to the letter, and no further details were given as to why the practice was deemed dangerous.
Officials searching for the missing submarine have warned that even if they find the missing tourist sub, they may not be able to rescue it.
The sub’s oxygen supply was down to just 40 hours as of Tuesday afternoon, giving rescue workers until Thursday morning to locate the sub before it ran out.
Rescue teams from the US, France and Canada are still trying to find the ship, which is believed to have last “pinged” directly over the Titanic wreck.
Capt. Jamie Frederick, first district response coordinator, said the Coast Guard has already searched 7,600 square miles of ocean — a search area the size of Connecticut.
The Boston Coast Guard is now searching for the missing ship. The wreck of the Titanic lies 12,500 feet underwater about 370 miles from Newfoundland, Canada
Among the expedition’s participants is billionaire Hamish Harding (pictured), CEO of Action Aviation in Dubai. He excitedly posted on social media that he was there on Sunday
Shahzada Dawood, 48, (pictured with his wife Christine), a UK-based board member of the charity Prince’s Trust, and his son Sulaiman Dawood, 19, are among five people who went missing from the submersible that was en route wrecked Titanic was unveiled today
At 12,500 feet underwater there are few vessels that can dive deep enough to find it.
This comes after revealed that OceanGate had refused to submit its submersible to an independent inspection process and fired a director in 2018 after he called for more stringent safety tests.
Bosses fired David Lochridge, the Titan Project’s head of naval operations, after he disagreed with his call for stricter safety testing of the submersible, including “tests to prove its integrity”.
The company also decided against “classifying” the boats, an industry-wide practice whereby independent inspectors ensure vessels meet recognized technical standards.
OceanGate, which charges up to $250,000 for a seat on the sub, said the search for a classification could take years and is “an anathema to rapid innovation.”
In 2019, the company added that Titan’s classification would not “ensure operators adhere to proper operating procedures and decision-making processes — two areas that are far more important to risk mitigation at sea.”
Titan is currently missing with five people on board after communications were lost during a dive to the Titanic wreck, which lies some 12,500 feet below the Atlantic
OceanGate bosses fired David Lochridge, the Titanic project’s naval chief of operations, in 2018 after the company disagreed with his calls for tighter security controls on the submersible, which went missing after a mission to the Titanic wreck
Classification involves engaging an independent organization to ensure vessels, such as ships and submersibles, meet industry-wide technical standards. This is a crucial way to ensure a ship is operational.
The Marine Technology Society’s Manned Underwater Vehicles Committee said in a statement on the tragedy that the “modern commercial submarine industry” is “regulated by classification societies in accordance with international safety standards.”
They added, “These organizations have rules and safety standards in place for the design and construction of systems ranging from submersible vehicles to supertankers and oil platforms.”
“Major submersible classification organizations include the American Bureau of Shipping (ABS), Det Nortke Veritas (DNV) and Lloyds Registry (LR), among others.
“The submarine industry has a safety record of fifty years without incident.”
“This is due to the technical discipline and professional approach of members of the industry, as well as the collective observation (and adherence) to various safety standards.”