The apparent success of OceanGate’s leaseback arrangement may have contributed to attracting its largest investment in 2020. At that time, the company was engaged in the costly process of replacing the first hull of the Titan, which had cracked during testing. This $18 million equity funding enabled OceanGate to rebuild the Titan and proceed with its inaugural Titanic expedition in 2021. Documents from that period suggest OceanGate might have gained greater control over Cyclops 2 LLC’s ownership.
By 2023, however, OceanGate’s financial stability appeared more precarious. Witnesses at the Coast Guard hearings testified to perceived financial difficulties faced by OceanGate leading up to the final Titanic expedition. These challenges reportedly included Stockton Rush deferring his salary and occasionally providing personal loans to the company.
Interest in the $250,000 Titanic dives seemed to be waning. As recently as May 2023, an affiliate seller of OceanGate was advertising limited availability at a 40% discount for that summer’s expeditions—an aspect previously unreported.
Should the federal investigation lead to criminal charges, they would occur alongside a civil lawsuit currently in federal court in Washington state. This lawsuit, filed by the family of renowned Titanic explorer Paul-Henri Nargeolet, is seeking $50 million for his death aboard the Titan. The lawsuit names OceanGate, Rush’s estate, and several individuals and companies associated with the ill-fated submersible as defendants. Rush’s estate recently moved to dismiss the complaint against it, arguing that OceanGate, as Rush’s employer, is liable for any alleged negligence by Rush.
Maritime lawyer Alton Hall expresses skepticism regarding the Nargeolet family’s likelihood of recovering the $50 million they are seeking. The Death on the High Seas Act of 1920 typically restricts damages to pecuniary losses, such as future earnings. An exception could apply if Nargeolet and his fellow passengers, referred to by OceanGate as “mission specialists,” qualified as seamen under the Jones Act. However, Hall believes the Titan passengers do not meet the criteria of Jones Act seamen.
A lingering question in these cases, including potential actions by families of two billionaires who also perished on the Titan, is who might face legal consequences. The civil case against OceanGate and Rush’s estate also names OceanGate’s initial director of engineering Tony Nissen, along with three companies that manufactured the Titan’s hull and viewport, as defendants. Testimonies from the Coast Guard hearings suggest Stockton Rush had the ultimate authority on various commercial, engineering, and operational decisions. However, given its precarious financial situation, there might ultimately be little left to salvage from the remnants of OceanGate.
