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Daily Mail
3 days ago
- Business
- Daily Mail
Boeing seals £812m deal to avoid prosecution over 737 Max plane crashes that killed 346 people - as lawyer for victims' families condemns agreement as 'morally repugnant'
Boeing has reached a deal with the US Department of Justice to avoid prosecution over crashes involving a 737 Max plane that killed 346 people. The agreement, outlined in a court filing this week, will see the aerospace giant pay $1.1 billion (£812 million), including a $487.2 million criminal penalty, half of which was already paid in a previous settlement. The move has been blasted by the victims' families' lawyer, Sanjiv Singh, who told the BBC the deal was a 'morally repugnant' escape which allowed the firm to 'sidestep true criminal accountability'. If approved by a federal judge, the deal would protect the firm from a criminal fraud trial. The company previously said it is 'deeply sorry' for their loss, adding that it remains 'committed to honouring their loved one's memories' by pressing ahead with changes to the company. The deal would also see $444.5m in compensation to families of the crash victims. It will also put $455m towards improving its compliance, safety and quality programmes. Boeing would also agree to pay a criminal penalty of $487.2m, although half of that was already paid in 2021. The two Boeing 737 Max crashes, which happened less than five months apart, claimed 346 lives and sparked global outrage. In October 2018, Lion Air flight 610 plunged into the Java Sea shortly after takeoff from Jakarta, in Indonesia killing all 189 people on board. Then, in March 2019, Ethiopian Airlines flight 302 crashed minutes after departing Addis Ababa, resulting in the deaths of 157 passengers and crew. Both disasters were later traced to faulty flight control systems, leading to the worldwide grounding of the 737 Max fleet for nearly two years. Since then, many families of the victims have spent years demanding a full public trial, tougher penalties for Boeing, and the prosecution of senior company executives. In 2021, Boeing avoided criminal prosecution by reaching a deferred prosecution agreement with the US Department of Justice, which included a $243.6 million fine. However, prosecutors later alleged that Boeing had breached the terms of its 2021 deferred prosecution agreement by failing to put in place promised reforms to detect and prevent future violations of federal anti-fraud laws. In response, Boeing agreed last July to plead guilty to a felony fraud charge, potentially avoiding a lengthy and high-profile public trial. It will be the fourth meeting between the DOJ and the families, some of whom are seen here in 2019, of those who died in the two 737 MAX crashes that killed 346 people in 2018 and 2019 But in December, US District Judge Reed O'Connor rejected the plea deal. He raised concerns that government and corporate diversity, equity, and inclusion (DEI) policies could influence the selection of an independent monitor, the person responsible for overseeing Boeing's compliance, and argued that race might become a factor in the appointment process. A spokesperson for Boeing said: '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 resolution also provides for substantial additional compensation for the families of those lost in the Lion Air Flight 610 and Ethiopian Airlines Flight 302 accidents. '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 that we have made to strengthen our safety system and culture.' MailOnline approached the US Justice Department for comment. The firm maker has also been plagued by other incidents involving its other planes in the US. Last year, a wheel fell off a Boeing 777-200 shortly after takeoff in San Francisco, with the wheel falling after takeoff, crushing cars parked below after it plummeted to the ground. The United Airlines flight 35 left San Francisco Airport on its way to Osaka in Japan and was barely off the runway when the Boeing 777-200's wheel came off. The plane with 235 passengers and 14 crew diverted to Los Angeles Airport after it was alerted to the landing gear failure and safely landed with no further issues and no injuries reported. Just days before this, a 737 engine caught fire mid-flight with a heart-stopping video catching the moment the Boeing jet's engines exploded and burst into flames in the skies above Texas, forcing an emergency landing. The terrifying incident took place just minutes into a United Airlines flight bound for Fort Myers, Florida. Moments later, they were forced to make an emergency landing and return to George H. Bush Intercontinental Houston Airport moments after takeoff. No injuries were reported in the incident.
The Guardian
4 days ago
- Business
- The Guardian
US-Boeing deal over 737 Max crashes ‘morally repugnant', says lawyer for victims' families
The aerospace company Boeing has agreed to pay $1.1bn (£812m) to avoid prosecution over two plane crashes that killed 346 people, in a deal that a lawyer for 16 families of the victims has described as 'morally repugnant'. The plane manufacturer has secured a deal – agreed in principle last month – with the US Department of Justice (DoJ), which includes paying $444.5m to the families of the victims who died in the crashes of 737 Max jetliners in 2018 and 2019. The company has also agreed to invest $445m towards improving its compliance, safety and quality programmes, according to an agreement signed by the DoJ and Boeing last week and detailed in a new US court filing. On top of this, Boeing has already paid $243m of a $487.2m criminal penalty agreed in 2021. Sanjiv Singh, the counsel for family members of some of the victims of the plane crash in Indonesia in 2018, told the BBC that the deal allowed Boeing to 'sidestep true criminal accountability'. The company has previously said that it was 'deeply sorry' for the families' losses and was committed to honouring the memories of the victims by pursuing broad and deep changes within the business. If the deal is approved by a federal judge, the fraud charge in the criminal case against Boeing will be dismissed. Two Boeing planes crashed off the coast of Indonesia and in Ethiopia less than five months apart in 2018 and 2019. Many relatives of the victims have spent years pursuing a public trial, more severe penalties for Boeing and the prosecution of former company officials. In October 2018, 189 people were killed when Lion Air flight 610 fell into the Java Sea off Indonesia. In March 2019, Ethiopian Airlines flight 302 crashed shortly after takeoff from Addis Ababa airport, which killed 157 people. Both incidents were linked to faulty flight control systems. The second crash prompted the grounding of the 737 Max plane for almost two years. The company avoided prosecution in 2021 after it reached a settlement with the US DoJ, which included the $243.6m fine. Sign up to Business Today Get set for the working day – we'll point you to all the business news and analysis you need every morning after newsletter promotion However, last year prosecutors argued that Boeing had violated the terms of the 2021 agreement by failing to make promised changes to detect and prevent violations of federal anti-fraud laws. Last July, Boeing agreed to plead guilty to the felony fraud charge instead of enduring what may have been a lengthy public trial. However, in December, the US district judge Reed O'Connor in Fort Worth rejected the deal. The judge said the diversity, equity and inclusion policies in government and at Boeing could result in race being a factor in picking an independent monitor to oversee Boeing's compliance with the agreement. Boeing was approached for comment. A company spokesperson told the BBC regarding the new agreement with the DoJ: '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.'
Saudi Gazette
4 days ago
- Business
- Saudi Gazette
Boeing-DOJ deal 'repugnant', says lawyer for victims' families
NEW YORK — A lawyer for 16 families of victims of a fatal Boeing 737 Max crash, has told the BBC that a deal between the firm and the US Justice Department (DOJ) is "morally repugnant". Boeing said it agreed to pay $1.1bn (£811.5m) to avoid prosecution over two crashes that killed 346 people, in a filing on Wednesday. Sanjiv Singh, counsel for family members of some of the victims of a 2018 crash in Indonesia, says the deal allows the firm to "sidestep true criminal accountability". Boeing has previously said: "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". The deal includes the aviation giant paying $444.5m to families of crash victims. It will also put $455m towards improving its compliance, safety and quality programmes. Under the deal, Boeing also agreed to pay a criminal penalty of $487.2m, although half of that was already paid in 2021."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," said a company the deal is approved by a federal judge the plane maker will avoid a criminal fraud trial."The [DOJ] agreed that it will not further criminally prosecute the company", said Boeing in a a Securities and Exchange Commission (SEC) BBC has contacted the DOJ to request further comment on the 737 Max aircraft crashed in separate but almost identical accidents that killed 346 October 2018, all 189 people on a Lion Air flight died after the aircraft crashed into the Java Sea 13 minutes after take-off from Jakarta, March 2019, an Ethiopian Airlines flight crashed six minutes after take-off from the Ethiopian capital of Addis Ababa. All 157 people on-board were killed. Both crashes were linked to faulty flight control 2021, Boeing agreed to settle US fraud charges and admitted deception over hiding information from safety officials about the design of its 737 Max of the victims will have the chance to appeal this latest deal when it is considered by a federal says the latest agreement has provoked "visceral outrage" from his clients and believes the current payout is insufficient."If you look at that $1.1bn, it's actually like Boeing paying $10 to escape criminal liability. It's as if they got a misdemeanor ticket or a parking ticket." — BBC
CNN
16-05-2025
- Business
- CNN
Boeing crash victims' families say Justice Department set to drop criminal case, decry decision as ‘morally repugnant'
CNN — The US Department of Justice is set to drop a criminal case against aircraft maker Boeing despite the fact that the company agreed to plead guilty last year, according to attorneys for families of victims of two fatal crashes of the 737 Max that led to the case. The victims' attorneys say they were notified by Justice Department officials Friday morning that it is looking at dropping the case and will instead reach a non-criminal settlement with the company. The new settlement will include an additional $444.5 million into a crash victims' fund that would be divided evenly per crash victim. The attorneys said the family members are outraged by the decision and that they will object to the decision in court. 'This is morally repugnant. It is a slap on the wrist. And it feels like a bribe,' said Sanjiv Singh, an attorney who represents 16 victims in the 2018 crash of a Lion Air Boeing 737 Max. The Justice Department declined to comment on the statement from the victims' families, and Boeing did not immediately responded to a request for comment Friday. The families' attorneys said they were informed this morning that Boeing now no longer is agreeing to plead guilty, and would take its chances at a trial, and that is the reason that the Justice Department is considering no longer pursuing the criminal charges. But Robert Clifford, an attorney for families in the Ethiopian crash, said the is no 'litigation risk' as now being claimed by the Justice Department, given the uncontested evidence against Boeing. The Lion Air crash and a crash of an Ethiopian Airlines flight in March 2019 killed a total of 346 people, and led to fraud charges against Boeing alleging that it deceived the Federal Aviation Administration during the initial certification process for the Max jets. The decision to drop the case against Boeing is another sign that the Trump administration could go easier on prosecution of corporate misdeeds than had been the case under the Biden administration. In the final days of the first Trump administration, Boeing agreed to a 'deferred prosecution' settlement on the same charges that could have relieved it of ever facing criminal prosecution. But in January 2024, days before a three-year probationary period on that original agreement ended, a door plug blew out of the side of a 737 Max flown by Alaska Air. While no one was killed in that incident, it opened the door for the Justice Department to again resume prosecution of the company. Six months later, Boeing agreed to the guilty plea. The original guilty plea reached in July included $487 million in fines — a fraction of the $24.8 billion that families of crash victims wanted the aircraft maker to pay. It also stipulated that Boeing would have to operate under the oversight of an independent monitor – a person to be chosen by the government – for a period of three years. The victims families objected to that guilty plea, arguing it let the company off too lightly for its misdeeds. In December Reed O'Connor, the federal judge hearing the case, rejected the guilty plea, not because it was too lenient, or too harsh, but because he had problems with how the independent monitor would be selected. 'It is fair to say the government's attempt to ensure compliance has failed,' O'Connor wrote in his opinion. 'At this point, the public interest requires the court to step in. Marginalizing the court in the selection and monitoring of the independent monitor as the plea agreement does undermines public confidence in Boeing's probation.' The attorneys for the families cheered O'Connor's decision in December to reject the plea, and they say they will turn to him again if the Justice Department moves to drop the criminal case against Boeing. 'You have all the facts you need to prosecute this case,' Clifford said in a statement. 'These families are willing to take the risks that their government apparently is unwilling to take to hold these criminals responsible. We are offended by this deal, and we will challenge this.'
Yahoo
16-05-2025
- Business
- Yahoo
Boeing crash victims' families say Justice Department set to drop criminal case, decry decision as ‘morally repugnant'
The US Department of Justice is set to drop a criminal case against aircraft maker Boeing despite the fact that the company agreed to plead guilty last year, according to attorneys for families of victims of two fatal crashes of the 737 Max that led to the case. The victims' attorneys say they were notified by Justice Department officials Friday morning that it is looking at dropping the case and will instead reach a non-criminal settlement with the company. The new settlement will include an additional $444.5 million into a crash victims' fund that would be divided evenly per crash victim. The attorneys said the family members are outraged by the decision and that they will object to the decision in court. 'This is morally repugnant. It is a slap on the wrist. And it feels like a bribe,' said Sanjiv Singh, an attorney who represents 16 victims in the 2018 crash of a Lion Air Boeing 737 Max. The Justice Department declined to comment on the statement from the victims' families, and Boeing did not immediately responded to a request for comment Friday. The families' attorneys said they were informed this morning that Boeing now no longer is agreeing to plead guilty, and would take its chances at a trial, and that is the reason that the Justice Department is considering no longer pursuing the criminal charges. But Robert Clifford, an attorney for families in the Ethiopian crash, said the is no 'litigation risk' as now being claimed by the Justice Department, given the uncontested evidence against Boeing. The Lion Air crash and a crash of an Ethiopian Airlines flight in March 2019 killed a total of 346 people, and led to fraud charges against Boeing alleging that it deceived the Federal Aviation Administration during the initial certification process for the Max jets. The decision to drop the case against Boeing is another sign that the Trump administration could go easier on prosecution of corporate misdeeds than had been the case under the Biden administration. In the final days of the first Trump administration, Boeing agreed to a 'deferred prosecution' settlement on the same charges that could have relieved it of ever facing criminal prosecution. But in January 2024, days before a three-year probationary period on that original agreement ended, a door plug blew out of the side of a 737 Max flown by Alaska Air. While no one was killed in that incident, it opened the door for the Justice Department to again resume prosecution of the company. Six months later, Boeing agreed to the guilty plea. The original guilty plea reached in July included $487 million in fines — a fraction of the $24.8 billion that families of crash victims wanted the aircraft maker to pay. It also stipulated that Boeing would have to operate under the oversight of an independent monitor – a person to be chosen by the government – for a period of three years. The victims families objected to that guilty plea, arguing it let the company off too lightly for its misdeeds. In December Reed O'Connor, the federal judge hearing the case, rejected the guilty plea, not because it was too lenient, or too harsh, but because he had problems with how the independent monitor would be selected. 'It is fair to say the government's attempt to ensure compliance has failed,' O'Connor wrote in his opinion. 'At this point, the public interest requires the court to step in. Marginalizing the court in the selection and monitoring of the independent monitor as the plea agreement does undermines public confidence in Boeing's probation.' The attorneys for the families cheered O'Connor's decision in December to reject the plea, and they say they will turn to him again if the Justice Department moves to drop the criminal case against Boeing. 'You have all the facts you need to prosecute this case,' Clifford said in a statement. 'These families are willing to take the risks that their government apparently is unwilling to take to hold these criminals responsible. We are offended by this deal, and we will challenge this.' CNN's Evan Perez contributed to this report. This is a developing story. It will be updated.
