Hmmm....not sure what the legal ramifications are....if any....

I am sure the pilot will go in front of a VERY rigorous Navy/Marine review board. Let's assume there was no negligence on the part of the pilot (these guys are top-notch. You don't get to "play" with an F-18 Hornet unless you are the creme de la creme). Let's assume the pilot did everything in his power to maneuver the jet away from a populated area prior to bailing.

Is the government still liable at that point? If the ones killed had been active-duty US military, they are prohibited from suing the US government. However, since these were civilians going about their business, it can open up a legal can of worms. The best and most sincere course of action is for the military to offer very substantial compensation to the victims' families. These civilians did not sign up to have F-18s crashing through their roofs.