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American Military News
4 days ago
- Business
- American Military News
US asks judge to dismiss criminal charge over Boeing 737 Max crashes
The U.S. Justice Department asked a federal judge in Texas to dismiss its criminal case against Boeing Co. over two fatal crashes of its 737 Max jets more than six years ago, despite objections of family members of some crash victims. The request, disclosed Thursday in a court filing, is part of a proposed settlement prosecutors reached with the planemaker last week. The case had been set to go to trial June 23. The government's agreement calls for Boeing to pay more than $1.1 billion in fees and fines, while taking steps to strengthen internal quality and safety measures. In return, the company will avoid criminal prosecution. It is a notable reversal in the long-running criminal case against Boeing over two fatal crashes of its 737 Max jet in 2018 and 2019 that killed 346 people. Just last year, Boeing had agreed to plead guilty to the pending criminal conspiracy charge under a deal that was ultimately rejected by U.S. District Judge Reed O'Connor, who has been overseeing the case since it was filed in 2021. Prosecutors said in the filing that their deal with the company 'secures meaningful accountability, delivers substantial and immediate public benefits, and brings finality to a difficult and complex case whose outcome would otherwise be uncertain.' While the government said some relatives of the crash victims didn't oppose the agreement, other family members plan to file a formal objection with the judge. 'Miscarriage of justice' 'Any resolution that allows Boeing to walk away without an admission of guilt is a miscarriage of justice,' Erin Applebaum, a partner at Kreindler & Kreindler LLP, said in a statement. 'We trust the court will see the agreement for what it is and reject the government's efforts to let Boeing escape accountability for the deaths it caused.' Boeing said in a statement it is committed to complying with its obligations under the agreement, including 'substantial additional compensation' for family members of crash victims. 'We are deeply sorry for their losses, and remain committed to honoring their loved ones' memories by pressing forward with the broad and deep changes to our company that we have made to strengthen our safety system and culture,' Boeing said. The new agreement is similar in many respects to the proposed plea deal that was rejected last year, with one notable exception: Boeing will not plead guilty to the pending criminal charge. Instead, the company will admit to the underlying accusation of 'conspiracy to obstruct and impede the lawful operation of the Federal Aviation Administration Aircraft Evaluation Group,' but that admission does not constitute a guilty plea. However, the government could refile criminal charges against the company if Boeing is accused of violating the terms of the agreement, which has a term of two years. Deal terms The agreement requires Boeing to pay a total of $1.1 billion in assorted fines and fees. The total includes: —$487.2 million for a criminal penalty, half of which the company already paid to the government during an earlier phase of the case —$444.5 million for a new 'Crash-Victims Beneficiaries Fund' that will be divided evenly by crash victim —$455 million in investments to bolster its compliance, safety and quality programs Boeing would be required to retain a so-called independent compliance consultant to oversee its efforts to improve the effectiveness of its anti-fraud compliance and ethics program. The consultant will be expected to make recommendations for improvements and report their findings directly to the government. In December, O'Connor rejected the company's proposed plea deal because he said it would improperly require race to be considered in the hiring of an independent monitor to review Boeing's actions. The new proposed agreement states that selection of the independent consultant 'will not take into account or otherwise engage in unlawful discrimination based on race, gender, or any other protected class.' Victims' families Finally, the agreement calls for family members of crash victims to have the opportunity to meet with Boeing's board of directors and speak to them about the impact of the company's conduct and about its compliance and safety programs. Relatives have spent years fighting for harsher penalties for Boeing and have opposed past attempts to resolve the case. Both crashes were linked to a flawed flight control system on 737 Max jets. The only Boeing official to face trial was a mid-level manager overseeing the pilot manuals and training materials. He was acquitted. 'While my client and I wanted to see a more vigorous prosecution, my hope is that the criminal case and the lawsuits motivated Boeing to improve safety,' Mark Lindquist, one of the attorneys for the victims' families, said Thursday. 'That's what truly matters.' In 2021, the company reached a deal with the government to defer prosecution in the criminal case, assuming it met certain requirements while under a period of government supervision. Last year, two days before the supervision period was set to conclude and the charge would have been dismissed, a door-sized plug blew out of an airborne 737 Max. While no one was killed, the accident led to investigations and findings of lax controls in Boeing's factories. The case is U.S. v. Boeing, 21-cr-005, U.S. District Court, Northern District of Texas (Fort Worth). ___ © 2025 Bloomberg L.P. Distributed by Tribune Content Agency, LLC.
Miami Herald
5 days ago
- Business
- Miami Herald
US asks judge to dismiss criminal charge over Boeing 737 Max crashes
The U.S. Justice Department asked a federal judge in Texas to dismiss its criminal case against Boeing Co. over two fatal crashes of its 737 Max jets more than six years ago, despite objections from family members of some crash victims. The request, disclosed Thursday in a court filing, is part of a proposed settlement prosecutors reached with the planemaker last week. The case had been set to go to trial on June 23. The government's agreement calls for Boeing to pay more than $1.1 billion in fees and fines, while taking steps to strengthen internal quality and safety measures. In return, the company will avoid criminal prosecution. It is a notable reversal in the long-running criminal case against Boeing over two fatal crashes of its 737 Max jet in 2018 and 2019 that killed 346 people. Just last year, Boeing had agreed to plead guilty to the pending criminal conspiracy charge under a deal that was ultimately rejected by U.S. District Judge Reed O'Connor, who has been overseeing the case since it was filed in 2021. Prosecutors said in the filing that their deal with the company 'secures meaningful accountability, delivers substantial and immediate public benefits, and brings finality to a difficult and complex case whose outcome would otherwise be uncertain.' While the government said some relatives of the crash victims didn't oppose the agreement, other family members plan to file a formal objection with the judge. 'Miscarriage of justice' 'Any resolution that allows Boeing to walk away without an admission of guilt is a miscarriage of justice,' Erin Applebaum, a partner at Kreindler & Kreindler LLP, said in a statement. 'We trust the court will see the agreement for what it is and reject the government's efforts to let Boeing escape accountability for the deaths it caused.' Boeing said in a statement it is committed to complying with its obligations under the agreement, including 'substantial additional compensation' for family members of crash victims. 'We are deeply sorry for their losses, and remain committed to honoring their loved ones' memories by pressing forward with the broad and deep changes to our company that we have made to strengthen our safety system and culture,' Boeing said. The new agreement is similar in many respects to the proposed plea deal that was rejected last year, with one notable exception: Boeing will not plead guilty to the pending criminal charge. Instead, the company will admit to the underlying accusation of 'conspiracy to obstruct and impede the lawful operation of the Federal Aviation Administration Aircraft Evaluation Group,' but that admission does not constitute a guilty plea. However, the government could refile criminal charges against the company if Boeing is accused of violating the terms of the agreement, which has a term of two years. Deal terms The agreement requires Boeing to pay a total of $1.1 billion in assorted fines and fees. The total includes: ▪ $487.2 million for a criminal penalty, half of which the company had already paid to the government during an earlier phase of the case ▪ $444.5 million for a new 'Crash-Victims Beneficiaries Fund' that will be divided evenly among crash victims ▪ $455 million in investments to bolster its compliance, safety and quality programs Boeing would be required to retain a so-called independent compliance consultant to oversee its efforts to improve the effectiveness of its anti-fraud compliance and ethics program. The consultant will be expected to make recommendations for improvements and report their findings directly to the government. In December, O'Connor rejected the company's proposed plea deal because he said it would improperly require race to be considered in the hiring of an independent monitor to review Boeing's actions. The new proposed agreement states that selection of the independent consultant 'will not take into account or otherwise engage in unlawful discrimination based on race, gender, or any other protected class.' Victims' families Finally, the agreement calls for family members of crash victims to have the opportunity to meet with Boeing's board of directors and speak to them about the impact of the company's conduct and about its compliance and safety programs. Relatives have spent years fighting for harsher penalties for Boeing and have opposed past attempts to resolve the case. Both crashes were linked to a flawed flight control system on 737 Max jets. The only Boeing official to face trial was a mid-level manager overseeing the pilot manuals and training materials. He was acquitted. 'While my client and I wanted to see a more vigorous prosecution, my hope is that the criminal case and the lawsuits motivated Boeing to improve safety,' Mark Lindquist, one of the attorneys for the victims' families, said Thursday. 'That's what truly matters.' In 2021, the company reached a deal with the government to defer prosecution in the criminal case, assuming it met certain requirements while under a period of government supervision. Last year, two days before the supervision period was set to conclude and the charge would have been dismissed, a door-sized plug blew out of an airborne 737 Max. While no one was killed, the accident led to investigations and findings of lax controls in Boeing's factories. The case is U.S. v. Boeing, 21-cr-005, U.S. District Court, Northern District of Texas (Fort Worth). Copyright (C) 2025, Tribune Content Agency, LLC. Portions copyrighted by the respective providers.
Arabian Post
27-05-2025
- Business
- Arabian Post
Boeing's $444M Settlement Sparks Outrage Among Crash Victims' Families
Boeing has reached a tentative agreement with the U.S. Department of Justice to avoid criminal prosecution over two fatal 737 Max crashes that claimed 346 lives in 2018 and 2019. The deal, pending court approval, requires Boeing to pay $444.5 million to victims' families and invest over $455 million in safety and compliance improvements. Additionally, the company will pay a $243.6 million fine, matching a previous penalty from a 2021 settlement. Under the agreement, Boeing will plead guilty to a single count of conspiracy to defraud the Federal Aviation Administration by concealing information about the Maneuvering Characteristics Augmentation System , a flight control system implicated in both crashes. The plea deal allows Boeing to avoid a criminal trial and maintain its eligibility for government contracts, a significant consideration given its role as a major defense contractor. The DOJ's decision to offer this plea deal has drawn sharp criticism from victims' families and legal advocates. Paul Cassell, a lawyer representing some of the families, condemned the agreement as a 'sweetheart deal' that fails to hold Boeing accountable for the deaths caused by its actions. He argued that the financial penalties are insufficient and do not reflect the severity of the company's misconduct. ADVERTISEMENT Erin Applebaum, another attorney for the victims' families, echoed these sentiments, stating that the deal is 'inadequate and superficial.' She emphasized that the families deserve a transparent legal process that truly holds Boeing accountable and prevents future tragedies. The plea agreement also includes the appointment of an independent compliance monitor to oversee Boeing's safety and quality reforms for three years. However, the selection process for this monitor has raised concerns, as Boeing will have input in proposing candidates. Critics argue that this undermines the monitor's independence and effectiveness. This is not the first time Boeing has faced legal consequences related to the 737 Max crashes. In 2021, the company entered into a deferred prosecution agreement with the DOJ, agreeing to pay $2.5 billion in penalties and implement compliance measures. However, prosecutors later determined that Boeing violated the terms of that agreement, leading to the current plea deal. The DOJ maintains that the new agreement ensures accountability and justice, asserting that it imposes the most serious penalties available under the circumstances. Nonetheless, many victims' families remain unconvinced, believing that the deal allows Boeing to evade full responsibility for its actions.
Yahoo
16-05-2025
- Business
- Yahoo
US proposes dropping Boeing criminal charge
US prosecutors may drop a criminal charge against the aerospace giant Boeing, linked to two crashes involving its bestselling aircraft, the 737 Max. In an online meeting with relatives of those who died in the two accidents, officials for the Department of Justice (DOJ) said they were considering allowing the company to sign a non-prosecution agreement to settle the case. The move would avoid a trial over the criminal fraud charge that is due to begin in June, after a judge rejected an earlier settlement in which Boeing had agreed to plead guilty. Lawyers representing families of the crash victims said they were "deeply disappointed" by the new plan. "While DOJ claims no final decision has been made, their scripted presentation made it clear that the outcome has already been decided," said Erin Applebaum, a partner at Kreindler and Kreindler, which represents 34 families of those killed in the Ethiopian crash. "Boeing has never stood trial for the 346 lives lost due to its admitted crimes. Now, DOJ is prepared to let the company walk away, again, with no more than a financial penalty," she added. Boeing currently faces a criminal fraud conspiracy charge, brought in the aftermath of two major 737 Max accidents in late 2018 off Indonesia and in Ethiopia in early 2019. The crashes, which killed 346 people, were blamed on a poorly designed piece of flight control software, which the pilots were not aware had been fitted to the aircraft. The Department of Justice subsequently accused Boeing of deliberately concealing vital information about the system from regulators, charging the firm with fraud. The firm admitted to the allegations but initially avoided prosecution by paying $2.5bn in fines and compensation and pledging to improve safety standards and compliance programmes. The case was reopened last year, after an incident in which an unused door fell off a 737 Max early in flight, leaving a gaping hole in the side of the aircraft. The DOJ accused Boeing of having breached the terms of the original settlement. Last year, a new deal was reached with prosecutors under which Boeing would plead guilty to the fraud charge, pay a further fine of $243m and agree to a court-appointed monitor overseeing its operations for a set period. But the agreement was rejected in December by a US district court judge overseeing the case, due in part to concerns over how the monitor would be selected. It is understood that Boeing has since sought to withdraw its guilty plea. A non-prosecution agreement would not involve admitting to criminal charges. That would spare Boeing from a criminal record, a black mark that would complicated its dealings as a contractor for the government. The case is currently due to go to trial on 23 June.
BBC News
16-05-2025
- Business
- BBC News
US proposes dropping Boeing criminal charge
US prosecutors may drop a criminal charge against the aerospace giant Boeing, linked to two crashes involving its bestselling aircraft, the 737 an online meeting with relatives of those who died in the two accidents, officials for the Department of Justice (DOJ) said they were considering allowing the company to sign a non-prosecution agreement to settle the move would avoid a trial over the criminal fraud charge that is due to begin in June, after a judge rejected an earlier settlement in which Boeing had agreed to plead representing families of the crash victims said they were "deeply disappointed" by the new plan. "While DOJ claims no final decision has been made, their scripted presentation made it clear that the outcome has already been decided," said Erin Applebaum, a partner at Kreindler and Kreindler, which represents 34 families of those killed in the Ethiopian crash. "Boeing has never stood trial for the 346 lives lost due to its admitted crimes. Now, DOJ is prepared to let the company walk away, again, with no more than a financial penalty," she added. Boeing currently faces a criminal fraud conspiracy charge, brought in the aftermath of two major 737 Max accidents in late 2018 off Indonesia and in Ethiopia in early crashes, which killed 346 people, were blamed on a poorly designed piece of flight control software, which the pilots were not aware had been fitted to the Department of Justice subsequently accused Boeing of deliberately concealing vital information about the system from regulators, charging the firm with fraud. The firm admitted to the allegations but initially avoided prosecution by paying $2.5bn in fines and compensation and pledging to improve safety standards and compliance case was reopened last year, after an incident in which an unused door fell off a 737 Max early in flight, leaving a gaping hole in the side of the aircraft. The DOJ accused Boeing of having breached the terms of the original year, a new deal was reached with prosecutors under which Boeing would plead guilty to the fraud charge, pay a further fine of $243m and agree to a court-appointed monitor overseeing its operations for a set the agreement was rejected in December by a US district court judge overseeing the case, due in part to concerns over how the monitor would be selected. It is understood that Boeing has since sought to withdraw its guilty plea. A non-prosecution agreement would not involve admitting to criminal charges. That would spare Boeing from a criminal record, a black mark that would complicated its dealings as a contractor for the case is currently due to go to trial on 23 June.
