Latest news with #737MAX8
New York Post
3 days ago
- Business
- New York Post
Families of victims in crashes plan objection to Boeing's deal with DOJ
The Department of Justice (DOJ) has reportedly informed victims' families of two fatal Boeing 737 MAX8 aircraft crashes that it is dismissing criminal fraud charges against the airplane manufacturer, though families plan to object to the filing. Clifford Law Offices said in a news release that the DOJ sent a letter to families on Thursday, informing them the government agency had filed a motion to dismiss the criminal fraud matter against Boeing. Instead, the DOJ said it filed a non-prosecution agreement (NPA) against Boeing regarding two 737 MAX 8 planes that crashed six years ago and killed 346 people. The DOJ sent the letter as part of the federal Crime Victims' Rights Act, which requires it to inform crime victims of their actions. Pro bono lawyer Paul Cassell, who also works as a professor at the S.J. Quinney College of Law at the University of Utah, represents several families of victims, and they have advised U.S. District Court Judge Reed O'Connor about their intentions to object to the DOJ's motion. 4 The Department of Justice has reportedly informed victims' families of two fatal Boeing 737 MAX 8 aircraft crashes that it is dismissing criminal fraud charges against the airplane manufacturer. AP The families were informed nearly a week after the DOJ said it had struck a tentative deal with Boeing that allows the company to avoid criminal prosecution for allegedly misleading regulators about the company's 737 Max plane before two crashes that killed 346 people. Under the deal, Boeing will pay out $1.1 billion, including $445 million to a fund for the crash victims' families, the DOJ said in court documents last week. In exchange, the DOJ will dismiss a fraud charge against the aircraft manufacturer. 4 The DOJ said it filed a non-prosecution agreement (NPA) against Boeing regarding two 737 MAX 8 planes that crashed six years ago and killed 346 people. REUTERS The DOJ did not immediately respond to FOX Business's request for comment on the matter. The news release noted that the families had been asking for a meeting with U.S. Attorney General Pam Bondi since Feb. 6, with hopes of meeting before a final decision was made. The law firm said the families had never heard back, as of Thursday. 4 Forensics investigators and recovery teams collect personal effects and other materials from the crash site of Ethiopian Airlines Flight ET 302 on March 12, 2019 in Bishoftu, Ethiopia. Getty Images 'Boeing must continue to improve the effectiveness of its anti-fraud compliance and ethics program and retain an independent compliance consultant,' the department said last week. 'We are confident that this resolution is the most just outcome with practical benefits.' Last year, Boeing agreed to plead guilty to a criminal fraud conspiracy charge after two fatal 737 Max crashes in Indonesia and Ethiopia in 2018 and 2019. The company previously agreed to pay a fine of up to $487.2 million and face three years of independent oversight. The deal announced last Friday did not go over well with relatives of those killed in the crashes. 4 U.S. investigators examine recovered parts of the Lion Air jet that crashed into the sea on Monday, at Tanjung Priok Port in Jakarta, Indonesia, Thursday, Nov. 1, 2018. AP 'This kind of non-prosecution deal is unprecedented and obviously wrong for the deadliest corporate crime in U.S. history. My families will object and hope to convince the court to reject it,' Cassell said. Boeing has faced increased scrutiny from the Federal Aviation Administration (FAA) since January 2024, when a new Max 9 missing four key bolts had a midair emergency, losing a door plug, Reuters reported. The FAA has capped production at 38 planes per month. Last year, the DOJ found Boeing had violated a 2021 agreement that shielded the plane-maker from prosecution.
Yahoo
3 days ago
- Business
- Yahoo
Boeing paying $1.1B as DOJ dismisses criminal fraud case; families of victims in crashes set to object to deal
The Department of Justice (DOJ) has reportedly informed victims' families of two fatal Boeing 737 MAX8 aircraft crashes that it is dismissing criminal fraud charges against the airplane manufacturer, though families plan to object to the filing. Clifford Law Offices said in a news release that the DOJ sent a letter to families on Thursday, informing them the government agency had filed a motion to dismiss the criminal fraud matter against Boeing. Instead, the DOJ said it filed a non-prosecution agreement (NPA) against Boeing regarding two 737 MAX8 planes that crashed six years ago and killed 346 people. The DOJ sent the letter as part of the federal Crime Victims' Rights Act, which requires them to inform crime victims of their actions. Justice Department Strikes Tentative Deal Allowing Boeing To Escape Criminal Charges In Fatal 737 Max Crashes Pro bono lawyer Paul Cassell, who also works as a professor at the S.J. Quinney College of Law at the University of Utah, represents several families of victims, and they have advised U.S. District Court Judge Reed O'Connor about their intentions to object to the DOJ's motion. Read On The Fox Business App The families were informed nearly a week after the DOJ said it had struck a tentative deal with Boeing that allows the company to avoid criminal prosecution for allegedly misleading regulators about the company's 737 Max plane before two crashes that killed 346 people. Under the deal, Boeing will pay out $1.1 billion, including $445 million to a fund for the crash victims' families, the DOJ said in court documents last week. Dc Plane Crash: Victim's Family Seeks $250 Million In First Legal Action Since Deadly Collision In exchange, the DOJ will dismiss a fraud charge against the aircraft manufacturer. The DOJ did not immediately respond to FOX Business' request for comment on the matter. The news release noted that the families had been asking for a meeting with U.S. Attorney General Pam Bondi since Feb. 6, with hopes of meeting before a final decision was made. The law firm said the families had never heard back, as of Thursday. "Boeing must continue to improve the effectiveness of its anti-fraud compliance and ethics program and retain an independent compliance consultant," the department said last week. "We are confident that this resolution is the most just outcome with practical benefits." Dc Plane Crash: Airport Employees Arrested Over Leaked Video Of Midair Collision Last year, Boeing agreed to plead guilty to a criminal fraud conspiracy charge after two fatal 737 Max crashes in Indonesia and Ethiopia in 2018 and 2019. The company previously agreed to pay a fine of up to $487.2 million and face three years of independent oversight. The deal announced last Friday did not go over well with relatives of those killed in the crashes. "This kind of non-prosecution deal is unprecedented and obviously wrong for the deadliest corporate crime in U.S. history. My families will object and hope to convince the court to reject it," Cassell said. Boeing has faced increased scrutiny from the Federal Aviation Administration (FAA) since January 2024, when a new Max 9 missing four key bolts had a midair emergency, losing a door plug, Reuters reported. The FAA has capped production at 38 planes per month. Last year, the DOJ found Boeing had violated a 2021 agreement that shielded the plane-maker from prosecution. FOX Business' Louis Casiano contributed to this article source: Boeing paying $1.1B as DOJ dismisses criminal fraud case; families of victims in crashes set to object to deal
Yahoo
23-05-2025
- Business
- Yahoo
Justice Department agrees to end Biden-era felony case against Boeing
The Justice Department announced an agreement Friday to end its felony case against Boeing for the plane-maker's role in two passenger jet crashes that killed a total of 346 people in Indonesia and Ethiopia — less than a year after the company agreed to plead guilty as part of a deal with the Biden administration. In return, Boeing must pay over $1.1 billion in fines, safety improvements and compensation for families of the people who died in the crashes in October 2018 and March 2019. Those disasters, involving Boeing's 737 MAX 8 jet, kicked off years of still-unresolved questions from lawmakers and safety experts about the federal government's oversight of the giant manufacturer and defense contractor. Boeing would have to "admit to conspiracy to obstruct and impede" federal regulators, but DOJ would agree to ask a judge to dismiss the case, the department said in a court filing. The government would have the option of refiling the charges later. Under last year's plea agreement, Boeing would have pleaded guilty to a felony of conspiracy to defraud the government, paid a total of $487 million in fines and subjected itself to an independent third-party monitor, among other provisions. Democratic lawmakers assailed DOJ's shift as news of the pending deal circulated this week, the latest in a string of cases in which President Donald Trump's administration has offered more leniency to alleged corporate wrongdoing than Biden's agencies had. 'There's no way that Boeing should be allowed to reopen or evade responsibility for this,' Connecticut Sen. Richard Blumenthal, the top Democrat on the Senate's Permanent Subcommittee on Investigations, told POLITICO Wednesday after news of the pending deal had broken last week. Lawmakers of both parties had scorched Boeing's safety record at a Senate hearing last June, where then-CEO David Calhoun stood and apologized to family members of some of the 346 victims. The senators focused not only on the 2018-19 crashes but also on more recent signs of trouble with the MAX, including a January 2024 incident in which a door plug blew out of an Alaska Airlines jet over Portland, Oregon. Whistleblowers at an earlier hearing last year testified to what they called a culture of promoting business over safety at Boeing. The deal, however, leaves open the possibility of re-filing the criminal charge if the department finds Boeing to be non-compliant with the new terms. According to the government's court filing Friday, Boeing will have to "admit to conspiracy to obstruct and impede the lawful operation of the Federal Aviation Administration Aircraft Evaluation Group," and the non-prosecution agreement "will not provide protection against prosecution for any other misconduct." "On top of the financial investments, Boeing must continue to improve the effectiveness of its anti-fraud compliance and ethics program and retain an independent compliance consultant," a Justice Department spokesperson said Friday. Boeing did not immediately respond to a request for comment. The first Trump administration's handling of the two deadly 737 MAX crashes drew criticism at the time, including for the FAA's slowness to join other countries throughout the world in ordering the jet to be grounded after the second crash in 2019. At one point, Trump spoke by phone with then-Boeing CEO Dennis Muilenburg, who reassured the president that the MAX was safe to fly. Investigators blamed the crashes on Boeing's failure to inform the FAA about details of a new flight control software system in the MAX, which was implicated in both disasters. They also faulted the FAA's over-reliance on Boeing employees to vouch for the safety of the plane's design, among a host of other issues. The fraud conspiracy charge stemmed from allegations that Boeing had violated the terms of a 2021 deferred-prosecution agreement with the DOJ in which the department allowed Boeing to avoid prosecution in exchange for fines and internal changes at the company. The department announced that deal at an exceedingly volatile moment in Washington: one day after the Jan. 6, 2021, assault on the Capitol. Families of the 346 victims' families have criticized the federal government's handling of the case virtually from its inception, including the 2021 agreement and last year's plea deal. They had wanted the department to pursue criminal charges, alleging that the company had knowingly put people in harm's way, but the DOJ has maintained that it couldn't prove such charges beyond a reasonable doubt. "Victims are at the heart of the Department's mission, and this case is no exception," the DOJ spokesperson said. "The Department has met extensively with the crash victims' families. While they are all experiencing grief, they hold a broad set of views regarding the resolution, ranging from support to disagreement. Ultimately, in applying the facts, the law, and Department policy, we are confident that this resolution is the most just outcome with practical benefits. "Nothing will diminish the victims' losses, but this resolution holds Boeing financially accountable, provides finality and compensation for the families and makes an impact for the safety of future air travelers,' the person added. After the January 2024 door plug blowout over Oregon, the department told a federal judge in May that newly revealed quality-control problems showed that the company had violated the 2021 agreement. That presented Boeing with a choice: take a plea or potentially stand trial. Boeing has maintained that it honored the terms of the deal. Despite last summer's plea agreement, however, the case was not over. A federal judge rejected the deal in December, expressing concerns about diversity policies at both Boeing and the DOJ, and noting that victims' families also objected to the proposed oversight process. Boeing subsequently sought to withdraw its agreement to plead guilty, The Wall Street Journal reported in March. DOJ's new about-face is already drawing ire on Capitol Hill. Blumenthal and Sen. Elizabeth Warren (D-Mass.) on Thursday sent a letter to Attorney General Pam Bondi urging the department not to sign the agreement, saying it would be a way for Boeing to 'weasel its way out of accountability for its failed corporate culture, and for any illegal behavior that has resulted in deadly consequences.' Sen. Tammy Duckworth (D-Ill.), the ranking member of the Commerce Committee's aviation subcommittee, said before the announcement that she viewed the move as the Trump administration going soft on a big corporation. 'I think Boeing and FAA have both shown that they're incapable of proper oversight. ... They both have a terrible history,' she told POLITICO on Thursday. The chair of that panel, Sen. Jerry Moran (R-Kan.), demurred when asked about the legal proceedings. 'My view is this is a judicial, prosecutorial question in the courts, not my domain,' he said Wednesday.
Politico
23-05-2025
- Business
- Politico
Justice Department agrees to end Biden-era felony case against Boeing
The Justice Department announced an agreement Friday to end its felony case against Boeing for the plane-maker's role in two passenger jet crashes that killed a total of 346 people in Indonesia and Ethiopia — less than a year after the company agreed to plead guilty as part of a deal with the Biden administration. In return, Boeing must pay over $1.1 billion in fines, safety improvements and compensation for families of the people who died in the crashes in October 2018 and March 2019. Those disasters, involving Boeing's 737 MAX 8 jet, kicked off years of still-unresolved questions from lawmakers and safety experts about the federal government's oversight of the giant manufacturer and defense contractor. Boeing would have to 'admit to conspiracy to obstruct and impede' federal regulators, but DOJ would agree to ask a judge to dismiss the case, the department said in a court filing. The government would have the option of refiling the charges later. Under last year's plea agreement, Boeing would have pleaded guilty to a felony of conspiracy to defraud the government, paid a total of $487 million in fines and subjected itself to an independent third-party monitor, among other provisions. Democratic lawmakers assailed DOJ's shift as news of the pending deal circulated this week, the latest in a string of cases in which President Donald Trump's administration has offered more leniency to alleged corporate wrongdoing than Biden's agencies had. 'There's no way that Boeing should be allowed to reopen or evade responsibility for this,' Connecticut Sen. Richard Blumenthal, the top Democrat on the Senate's Permanent Subcommittee on Investigations, told POLITICO Wednesday after news of the pending deal had broken last week. Lawmakers of both parties had scorched Boeing's safety record at a Senate hearing last June, where then-CEO David Calhoun stood and apologized to family members of some of the 346 victims. The senators focused not only on the 2018-19 crashes but also on more recent signs of trouble with the MAX, including a January 2024 incident in which a door plug blew out of an Alaska Airlines jet over Portland, Oregon. Whistleblowers at an earlier hearing last year testified to what they called a culture of promoting business over safety at Boeing. The deal, however, leaves open the possibility of re-filing the criminal charge if the department finds Boeing to be non-compliant with the new terms. According to the government's court filing Friday, Boeing will have to 'admit to conspiracy to obstruct and impede the lawful operation of the Federal Aviation Administration Aircraft Evaluation Group,' and the non-prosecution agreement 'will not provide protection against prosecution for any other misconduct.' 'On top of the financial investments, Boeing must continue to improve the effectiveness of its anti-fraud compliance and ethics program and retain an independent compliance consultant,' a Justice Department spokesperson said Friday. Boeing did not immediately respond to a request for comment. The first Trump administration's handling of the two deadly 737 MAX crashes drew criticism at the time, including for the FAA's slowness to join other countries throughout the world in ordering the jet to be grounded after the second crash in 2019. At one point, Trump spoke by phone with then-Boeing CEO Dennis Muilenburg, who reassured the president that the MAX was safe to fly. Investigators blamed the crashes on Boeing's failure to inform the FAA about details of a new flight control software system in the MAX, which was implicated in both disasters. They also faulted the FAA's over-reliance on Boeing employees to vouch for the safety of the plane's design, among a host of other issues. The fraud conspiracy charge stemmed from allegations that Boeing had violated the terms of a 2021 deferred-prosecution agreement with the DOJ in which the department allowed Boeing to avoid prosecution in exchange for fines and internal changes at the company. The department announced that deal at an exceedingly volatile moment in Washington: one day after the Jan. 6, 2021, assault on the Capitol. Families of the 346 victims' families have criticized the federal government's handling of the case virtually from its inception, including the 2021 agreement and last year's plea deal. They had wanted the department to pursue criminal charges, alleging that the company had knowingly put people in harm's way, but the DOJ has maintained that it couldn't prove such charges beyond a reasonable doubt. 'Victims are at the heart of the Department's mission, and this case is no exception,' the DOJ spokesperson said. 'The Department has met extensively with the crash victims' families. While they are all experiencing grief, they hold a broad set of views regarding the resolution, ranging from support to disagreement. Ultimately, in applying the facts, the law, and Department policy, we are confident that this resolution is the most just outcome with practical benefits. 'Nothing will diminish the victims' losses, but this resolution holds Boeing financially accountable, provides finality and compensation for the families and makes an impact for the safety of future air travelers,' the person added. After the January 2024 door plug blowout over Oregon, the department told a federal judge in May that newly revealed quality-control problems showed that the company had violated the 2021 agreement. That presented Boeing with a choice: take a plea or potentially stand trial. Boeing has maintained that it honored the terms of the deal. Despite last summer's plea agreement, however, the case was not over. A federal judge rejected the deal in December, expressing concerns about diversity policies at both Boeing and the DOJ, and noting that victims' families also objected to the proposed oversight process. Boeing subsequently sought to withdraw its agreement to plead guilty, The Wall Street Journal reported in March. DOJ's new about-face is already drawing ire on Capitol Hill. Blumenthal and Sen. Elizabeth Warren (D-Mass.) on Thursday sent a letter to Attorney General Pam Bondi urging the department not to sign the agreement, saying it would be a way for Boeing to 'weasel its way out of accountability for its failed corporate culture, and for any illegal behavior that has resulted in deadly consequences.' Sen. Tammy Duckworth (D-Ill.), the ranking member of the Commerce Committee's aviation subcommittee, said before the announcement that she viewed the move as the Trump administration going soft on a big corporation. 'I think Boeing and FAA have both shown that they're incapable of proper oversight. ... They both have a terrible history,' she told POLITICO on Thursday. The chair of that panel, Sen. Jerry Moran (R-Kan.), demurred when asked about the legal proceedings. 'My view is this is a judicial, prosecutorial question in the courts, not my domain,' he said Wednesday.
Time of India
13-05-2025
- Business
- Time of India
Donald Trump Tariff Live Updates: Boeing April deliveries hit by US-China trade war
The new US-China trade truce has eased some of the pressure on global markets, but its impact on companies like Boeing highlights how disruptive the standoff became. After months of tariff escalation, both sides agreed to roll back duties - the US slashing rates on Chinese goods from 145 per cent to 30 per cent, and China reducing its tariffs on US goods from 125 per cent to 10 per cent. The Geneva deal, struck after intense negotiations, was a strategic retreat for Washington and a validation of Beijing's patient resistance. One of the most affected American firms was Boeing. In April, the company delivered 45 commercial planes, a slight increase from the prior month. But only two of those aircraft were sent to Chinese customers - a sharp drop for one of Boeing's most important international markets. Deliveries had been effectively frozen due to escalating trade tensions and public criticism of China from President Trump. Boeing CEO Kelly Ortberg acknowledged the halt last month, as China pushed back sharply in response to US rhetoric. Though China has now begun lifting its delivery ban following the truce, sources indicate that the timeline for renewed shipments remains uncertain. Despite the freeze, Boeing managed to announce a new international order: 20 737 MAX 8 jets from Saudi leasing firm AviLease, with options for 10 more. The order was timed with President Trump's state visit to Saudi Arabia, a reminder that Boeing continues to build ties elsewhere. While the truce marks a cooling of hostilities, deep-rooted tensions remain. The Boeing-China situation illustrates that even high-level agreements don't immediately repair the practical business damage caused by prolonged geopolitical friction.
