Latest news with #ManeuveringCharacteristicsAugmentationSystem
Indian Express
14 hours ago
- Business
- Indian Express
Boeing to pay over $1 billion to avoid criminal trial in 737 Max crash cases
Boeing has agreed to pay $1.1 billion to settle a US Department of Justice (DOJ) investigation into two deadly crashes involving its 737 Max aircraft that killed a total of 346 people. The settlement, announced this week, would allow the aerospace giant to avoid a criminal fraud trial that was scheduled to begin on 23 June, pending approval from a federal judge. A Boeing spokesperson stated, 'Boeing is committed to complying with its obligations under this resolution, which include a substantial additional fine and commitments to further institutional improvements and investments.' The deal includes several financial components: The settlement follows two similar and devastating crashes involving Boeing's 737 Max jets: Both incidents were linked to faulty flight control systems, specifically the aircraft's Maneuvering Characteristics Augmentation System (MCAS), which repeatedly forced the planes into nose-dives. Boeing has publicly acknowledged the need for change. 'We are deeply sorry for their losses, and remain committed to honouring their loved ones' memories by pressing forward with the broad and deep changes to our company,' the company said in a statement. If the court approves the settlement, Boeing will avoid criminal prosecution. (With inputs from BBC)
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.
Epoch Times
23-05-2025
- Business
- Epoch Times
DOJ Agrees to End Prosecution Against Boeing Over 737 MAX Crashes
The U.S. Department of Justice (DOJ) said it has reached a deal in principle with Boeing and will drop its criminal prosecution stemming from two 737 MAX crashes that killed 346 people. As part of the deal Specifically, that includes a $487.2 million criminal fine, $444.5 million toward a fund to be evenly distributed among the victims' families, and $455 million dedicated to boosting Boeing's compliance, safety, and quality programs. Boeing will also admit to 'conspiracy to obstruct and impede' the Federal Aviation Administration (FAA), instead of standing trial on a felony charge of conspiracy to defraud federal regulators. The deal does leave open the possibility of re-filing the criminal charge if the government finds Boeing to be noncompliant with the new terms. The DOJ also clarified that the deal 'will not provide protection against prosecution for any other misconduct.' The agreement needs the approval of U.S. District Judge Reed O'Connor of Fort Worth, Texas, who is presiding over the case. Related Stories 5/19/2025 4/2/2025 '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 spokesperson for the DOJ said, quoting directly from Friday's agreement. Boeing did not immediately respond to a request for comment. The federal prosecution against Boeing stemmed from two 737 MAX crashes that occurred within five months of each other: one off the coast of Indonesia in October 2018 and another in Ethiopia in May 2019. All passengers and crew on board both flights were killed. Investigators linked the crashes to a flight control system called the Maneuvering Characteristics Augmentation System, or MCAS, which was designed to automatically push the plane's nose down if a sensor detected a stall. In both tragedies, erroneous sensor readings activated MCAS, sending the aircraft into a dive that the pilots were unable to reverse. According to a Federal prosecutors later In 2021, Boeing reached a $2.5 billion settlement with the DOJ that allowed it to avoid prosecution. That agreement included a $243.6 million fine and commitments from Boeing to improve compliance and safety programs. In May 2024, prosecutors alleged that Boeing had violated the terms of that agreement by failing to implement promised reforms designed to prevent violations of federal anti-fraud laws. In response, Boeing agreed last July to a Judge O'Connor rejected that plea deal in December, siding with victims' families demanding a trial. The judge took issue with the selection process for an independent monitor, saying that the diversity, equity, and inclusion (DEI) policies in the government and at Boeing could allow race or other diversity factors to influence the selection. He also criticized the agreement for excluding the court from any role in the monitor's appointment. 'It is fair to say the government's attempt to ensure compliance has failed. At this point, the public interest requires the court to step in,' O'Connor A trial in the case is currently
Yahoo
23-05-2025
- Business
- Yahoo
Boeing and the DOJ cut a deal to avoid prosecution in deadly 737 Max crashes
The Department of Justice has struck a deal with Boeing (BA), enabling the company to avoid prosecution for a pair of crashes involving its 737 Max passenger jet that killed 346 people in Indonesia and Ethiopia. The Associated Press reported that Boeing would pay out $1.1 billion in fines and safety improvements, while setting aside $445 million for the crash victims' families. The DOJ would then dismiss the case, after alleging that Boeing misled U.S. regulators at the Federal Aviation Administration about the plane's safety features. The 'agreement in principle' still needs to be finalized. The agreement compels Boeing to maintain an anti-fraud compliance and ethics program, per the Wall Street Journal. An independent compliance consultant would ensure improvements are being made and reported to the federal government. 'Ultimately, in applying the facts, the law, and Department policy, we are confident that this resolution is the most just outcome with practical benefits,' a DOJ spokesperson said in a statement. '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 families of the victims sought a public trial to prosecute executives and inflict steep financial penalties on Boeing. The trial had been set to start on June 23, 'Although the DOJ proposed a fine and financial restitution to the victims' families, the families that I represent contend that it is more important for Boeing to be held accountable to the flying public,' Paul Cassell, an attorney representing the families, said in a statement earlier in the week. It's not the first settlement involving Boeing and the 737 Max. In January 2021, Boeing agreed to pay more than $2.5 billion to settle charges that it defrauded the Federal Aviation Administration's Aircraft Evaluation Group about the aircraft's Maneuvering Characteristics Augmentation System, which impacted the flight control system of the Boeing 737 MAX. For the latest news, Facebook, Twitter and Instagram.
Epoch Times
20-05-2025
- Business
- Epoch Times
DOJ Says It May Drop Boeing Criminal Fraud Case Over 737 Max Crashes
The U.S. Department of Justice (DOJ) said it may drop its criminal prosecution of Boeing over allegations that the company deceived federal regulators before two 737 Max crashes that killed 346 people. In a May 17 filing, the DOJ The department told the families that no final decision had been made. It also noted that the families consistently advocated for a public trial and were opposed to a motion to dismiss the case. Boeing faces a criminal fraud conspiracy charge stemming from two 737 Max crashes that occurred within five months of each other: one off the coast of Indonesia in October 2018 and another in Ethiopia in May 2019. All passengers and crew aboard both flights were killed. Investigators linked both crashes to a flight control system known as the Maneuvering Characteristics Augmentation System, or MCAS. Designed to automatically push the plane's nose down if a sensor detected a stall, MCAS relied on input from a single angle-of-attack sensor. In both accidents, erroneous sensor readings activated MCAS, sending the aircraft into dives that the pilots were unable to recover from. Related Stories 9/5/2024 7/8/2024 According to a Federal prosecutors later In 2021, Boeing reached a $2.5 billion settlement with the DOJ that allowed it to avoid prosecution. The agreement included a $243.6 million criminal fine and commitments from Boeing to improve compliance and safety programs. In May 2024, prosecutors alleged Boeing had violated the terms of that agreement by failing to implement promised reforms designed to prevent violations of federal anti-fraud laws. In response, Boeing agreed last July to a guilty plea deal, which included another $243.6 million fine, $455 million for safety and compliance improvements over the next three years, and oversight by a government-appointed independent monitor. That plea deal was rejected in December by U.S. District Judge Reed O'Connor in Fort Worth, Texas, who sided with victims' families demanding a trial. The judge took issue with the selection process for an independent monitor, saying that the diversity, inclusion, and equity (DEI) policies in the government and at Boeing could allow race or other diversity factors to influence the selection. He also criticized the agreement for excluding the court from any role in the monitor's appointment. 'It is fair to say the government's attempt to ensure compliance has failed. At this point, the public interest requires the court to step in,' O'Connor 'Marginalizing the court in the selection and monitoring of the independent monitor as the plea agreement does undermine public confidence in Boeing's probation.' A trial in the case is currently Boeing and the Justice Department did not respond to requests for comments by publication time.
