Latest news with #ReedO'Connor
New York Post
2 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.
American Military News
2 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.
Mint
2 days ago
- Business
- Mint
US-Boeing deal over 737 Max crashes: What are its terms, and what are victims' families saying? Explained
Following the settlement of a deal, the US Department of Justice has asked a federal judge in Texas to junk its criminal case against aircraft maker Boeing over two fatal crashes more than six years ago. The deal was made despite objections of family members of some victims of the crashes. Here is everything you need to know about the deal and what's really happening. The Justice Department has reached a deal with Boeing that will allow the company to avoid criminal prosecution, reports said quoting court papers last Friday. Boeing was charged for allegedly misleading US regulators about the 737 Max jetliner before two of the planes crashed and killed 346 people. In the court filing on May 23, the Justice Department said it had reached an 'agreement in principle' with Boeing. Dismissing the fraud charge will allow the manufacturer to avoid a possible criminal conviction that could have jeopardised the company's status as a federal contractor, the Associated Press reported quoting experts. As per the terms of the deal, Boeing will be required to pay and invest more than $1.1 billion. In return, the Justice Department will dismiss the criminal case against the aircraft manufacturer. This includes an additional $445 million for the crash victims' families. However, the deal has not been finalised yet. 'The Agreement guarantees further accountability and substantial benefits from Boeing immediately, while avoiding the uncertainty and litigation risk presented by proceeding to trial,' Justice Department lawyers wrote in court papers. US District Judge Reed O'Connor in Fort Worth, Texas, will decide whether to accept the motion to dismiss, accept the terms of the non-prosecution agreement and whether to cancel the trial. O'Connor on Thursday ordered all the lawyers to present him with a briefing schedule on the government's motion by June 4. Paul Cassell, an attorney for many of the families in the long-running case, had previously said said his clients strongly oppose dropping the criminal case. 'Dismissing the case would dishonour the memories of 346 victims who Boeing killed through its callous lies,' Cassell said in a recent statement. Many relatives of the passengers who died in the crashes, which took place off the coast of Indonesia and in Ethiopia less than five months apart in 2018 and 2019, have spent years pushing for a public trial, the prosecution of former company officials, and more severe financial punishment for Boeing.
Yahoo
2 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
2 days ago
- Business
US formally moves to dismiss prosecution against Boeing and asks judge to cancel trial over crashes
WASHINGTON -- The U.S. Justice Department has formally moved to dismiss a criminal fraud charge against Boeing and has asked a judge to cancel an upcoming trial connected to two plane crashes that killed 346 people off the coast of Indonesia and in Ethiopia, according to court documents filed Thursday. The deal, announced last week, will allow the American aircraft manufacturer to avoid criminal prosecution for allegedly misleading U.S. regulators about the 737 Max jetliner before the planes crashed less than five months apart in 2018 and 2019. The 'agreement in principle' will require the company to pay and invest more than $1.1 billion, including an additional $445 million for the crash victims' families, in return for dismissing the criminal case, according to court documents. Dismissing the fraud charge will allow the manufacturer to avoid a possible criminal conviction that could have jeopardized the company's status as a federal contractor, experts have said. U.S. District Judge Reed O'Connor in Fort Worth, Texas, will decide whether to accept the motion to dismiss, accept the terms of the non-prosecution agreement and whether to cancel the trial. O'Connor on Thursday ordered all the lawyers to present him with a briefing schedule on the government's motion by June 4. Some relatives of the passengers who died in the crashes have been pushing for a public trial, the prosecution of former company officials, and more severe financial punishment for Boeing. The Justice Department has noted that the victims' families had mixed views on the proposed deal. Nadia Milleron, a Massachusetts resident whose 24-year-old daughter, Samya Stumo, died in the Ethiopia crash, in an email Thursday said it hurt her to read the Justice Department's 'false' statement that the agreement will secure meaningful accountability, deliver public benefits and bring finality to a complex case whose outcome would otherwise be uncertain. 'This is not a difficult or complex case because Boeing signed a confession,' Milleron said. 'There will be no accountability as a result of the NPA (non-prosecution deal).' Boeing said in a statement that the company is committed to complying with its obligations under the resolution, including commitments to further institutional improvements and investments, as well as additional compensation for families of those who died in the two plane crashes. '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,' a Boeing spokesperson said in the statement. Attorney Mark Lindquist, who represents dozens of the victims' families said in a statement Thursday that although he had wanted to see a more vigorous prosecution, he didn't think it was going to happen. 'At this point, I can only hope the criminal case and the lawsuits motivated Boeing to improve safety,' Lindquist said. 'That's what really matters. We all want to walk onto a Boeing plane and feel safe.' Boeing was accused of misleading the Federal Aviation Administration about aspects of the Max before the agency certified the plane for flight. Boeing did not tell airlines and pilots about a new software system that could turn the plane's nose down without input from pilots if a sensor detected that the plane might go into an aerodynamic stall. The Max planes crashed after a faulty reading from the sensor pushed the nose down and pilots were unable to regain control. After the second crash, Max jets were grounded until the company redesigned the software. The Justice Department charged Boeing in 2021 with deceiving FAA regulators about the software and about how much training pilots would need to fly the plane safely. The department agreed not to prosecute Boeing at the time, however, if the company paid a $2.5 billion settlement, including the $243.6 million fine, and took steps to comply with anti-fraud laws for three years. But last year, federal prosecutors said Boeing violated the terms of the 2021 agreement by failing to make promised changes to detect and prevent violations of federal anti-fraud laws. Boeing agreed last July to plead guilty to the felony fraud charge instead of enduring what could have been a lengthy public trial. Then in December, O'Connor rejected the plea deal. The judge said the diversity, inclusion and equity, or DEI, policies in the government and at Boeing could result in race being a factor in picking a monitor to oversee Boeing's compliance with the agreement. Under the new agreement, Boeing must retain an 'independent compliance consultant' who will make recommendations for 'further improvement' and report back to the government, court documents said.
