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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
Arabian Post
6 days ago
- 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.
Daily Tribune
26-05-2025
- Business
- Daily Tribune
US, Boeing reach deal to resolve MAX criminal case
The Justice Department said Friday it reached a preliminary agreement with Boeing to settle a long-running criminal probe into deadly 737 MAX crashes, drawing condemnation from some crash victim families. Under an 'agreement in principle,' Boeing will pay $1.1 billion and the Department of Justice (DOJ) would dismiss a criminal charge against Boeing over its conduct in the certification of the MAX, DOJ said in a federal filing. A judge must approve the accord, which would scuttle a criminal trial scheduled for June in Fort Worth, Texas. The agreement would resolve the case without requiring Boeing to plead guilty to fraud in the certification of the MAX, which was involved in two crashes in 2018 and 2019 that claimed 346 lives. Family members of some MAX victims slammed the proposed settlement as a giveaway to Boeing. 'The message sent by this action to companies around the country is, don't worry about making your products safe for your customers,' said Javier de Luis in a statement released by attorneys for plaintiffs suing Boeing. 'This kind of non-prosecution deal is unprecedented and obviously wrong for the deadliest corporate crime in US history,' said Paul Cassell, an attorney representing relatives of victims. 'My families will object and hope to convince the court to reject it.' But the DOJ, in its brief, cited other family members who expressed a desire for closure, quoting one who said 'the grief resurfaces every time this case is discussed in court or other forums.' Family members of more than 110 crash victims told the government 'they either support the Agreement specifically, support the Department's efforts to resolve the case pre-trial more generally or do not oppose the agreement,' the filing said. The DOJ filing called the accord 'a fair and just resolution that serves the public interest.' 'The Agreement guarantees further accountability and substantial benefits from Boeing immediately, while avoiding the uncertainty and litigation risk presented by proceeding to trial,' it said. Friday's proposed agreement marks the latest development in a marathon case that came in the wake of the two crashes that tarnished Boeing's reputation and contributed to leadershipshakeups at the aviation giant. The case dates to a January 2021 DOJ agreement with Boeing that settled charges that the company knowingly defrauded the Federal Aviation Administration during the MAX certification. The 2021 accord included a three-year probation period. But in May 2024, the DOJ determined that Boeing had violated the 2021 accord following a number of subsequent safety lapses.
Daily Tribune
26-05-2025
- Business
- Daily Tribune
Boeing Reaches $1.1 Billion Settlement with DOJ Over Deadly 737 Max Crashes
Boeing has agreed to a $1.1 billion settlement with the U.S. Department of Justice (DOJ), allowing the aerospace giant to avoid criminal prosecution related to two catastrophic 737 Max crashes that claimed 346 lives. The agreement, revealed in court documents on Friday, stems from the 2018 Lion Air Flight 610 crash in Indonesia and the 2019 Ethiopian Airlines Flight 302 crash. The twin tragedies, both involving Boeing's 737 Max aircraft, triggered global outrage and led to a nearly two-year grounding of the jet model. According to the DOJ, the settlement resolves allegations that Boeing misled federal regulators about critical safety issues with the aircraft's flight control system before the accidents occurred. The deferred prosecution agreement means Boeing will not face a criminal trial, provided it complies with the terms laid out in the deal. Of the $1.1 billion settlement, $445 million will be allocated as compensation to the families of crash victims. The remaining funds are intended to strengthen Boeing's internal compliance, safety, and quality assurance programs. However, the agreement has sparked fierce criticism from victims' families and their legal representatives, who argue that the deal offers financial reparations without true accountability. 'This kind of non-prosecution deal is unprecedented and obviously wrong for the deadliest corporate crime in U.S. history,' said Paul Cassell, an attorney representing several of the families. 'My clients will object and ask the court to reject it.' Cassell emphasized that for many families, public accountability through a criminal trial is more important than financial compensation. 'It is more important for Boeing to be held accountable to the flying public,' he added. Boeing has declined to comment on the settlement. In its court filings, the DOJ defended the resolution, asserting that it had carefully considered the facts, applicable legal standards, and the perspectives of affected families. Prosecutors argued that the settlement 'holds Boeing financially accountable, provides finality and compensation for the families, and makes an impact for the safety of future air travelers.' Despite years of advocacy from victims' families calling for criminal accountability for former Boeing executives, federal prosecutors maintained that the agreement represents the most just and practical resolution under the circumstances. The court will ultimately decide whether to approve the settlement. If accepted, the deal could mark a controversial close to one of the most significant corporate safety failures in aviation history.
