Latest news with #crashVictims
The Independent
30-05-2025
- Business
- The Independent
US formally moves to dismiss prosecution against Boeing and asks judge to cancel trial over crashes
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.
Travel Weekly
27-05-2025
- Business
- Travel Weekly
Boeing to avoid prosecution in $1.1 billion settlement over 737 Max crashes
WASHINGTON (AP) -- The Justice Department has reached a deal with Boeing that will allow the airplane giant to avoid criminal prosecution for allegedly misleading U.S. regulators about the 737 Max jetliner before two of the planes crashed and killed 346 people, according to court papers filed May 23. Under the "agreement in principle," which still needs to be finalized, Boeing would pay or invest more than $1.1 billion, including an additional $445 million for the crash victims' families, the Justice Department said. In return, the department has agreed to dismiss the fraud charge against Boeing, allowing the manufacturer to avoid a possible criminal conviction that could have jeopardized the company's status as a federal contractor, according to experts. "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 Justice Department 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." Boeing declined to comment. Some 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 been pushing for a public trial, the prosecution of former company officials, and more severe financial punishment for Boeing. The Justice Department noted that the victims' families had mixed views on the proposed deal. "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 for many of the families in the long-running case. "My families will object and hope to convince the court to reject it." Javier de Luis, whose sister, Graziella, died in the Ethiopia crash, said the Justice Department is walking away "from any pretense to seek justice for the victims of the 737 Max crashes." "The message sent by this action to companies around the country is, don't worry about making your products safe for your customers," he said in a statement. "Even if you kill them, just pay a small fine and move on." 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, called MCAS, 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 worldwide until the company redesigned MCAS to make it less powerful and to use signals from two sensors, not just one. The Justice Department charged Boeing in 2021 with deceiving FAA regulators about the software, which did not exist in older 737s, 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. Federal prosecutors, however, last year 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 a potentially lengthy public trial. But in December, U.S. District Judge Reed O'Connor in Fort Worth 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. The plea deal had called for an independent monitor to be named to oversee Boeing's safety and quality procedures for three years. Under the agreement announced Friday, Boeing must retain an "independent compliance consultant" who will make recommendations for "further improvement" and report back to the government, according to court papers.
CNN
23-05-2025
- Business
- CNN
Boeing to pay $1.1 billion as part of deal to settle 737 Max crash cases with DOJ
The US Department of Justice said Friday that it struck a deal with aircraft maker Boeing to avoid prosecution of the company over two fatal crashes of the 737 Max, according to a Friday court filing in the case. The filing makes official a proposal publicly reported last week, though a judge will still have to approve the deal for it to go into effect. As part of proposed deal, called a non-prosecution agreement, Boeing will pay more than $1.1 billion in fines, commitments to strengthen safety and compliance programs, and payments for the crash victims' families, a DOJ spokesperson said. 'The Agreement guarantees further accountability and substantial benefits from Boeing immediately, while avoiding the uncertainty and litigation risk presented by proceeding to trial,' the department wrote in a court filing. If approved, the agreement will end a long and tumultuous case against the aviation company. Boeing first faced fraud charges over its alleged deception to the Federal Aviation Administration during the initial certification process for the 737 Max jets. The DOJ and Boeing then entered 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. Boeing agreed to plead guilty to the charges in July, but 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. Attorneys for the victims' families spoke out against the proposed agreement, with one saying last week that the deal is 'morally repugnant. It is a slap on the wrist. And it feels like a bribe.' A DOJ spokesperson said Friday that they 'met extensively with the crash victims' families' when considering the deal, and that 'they hold a broad set of views regarding the resolution, ranging from support to disagreement.' '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 spokesperson said.
CTV News
23-05-2025
- Business
- CTV News
U.S. Justice Department reaches deal to allow Boeing to avoid prosecution over 737 Max crashes
WASHINGTON — The U.S. Justice Department has reached a deal with Boeing that will allow the airplane giant to avoid criminal prosecution for allegedly misleading U.S. regulators about the 737 Max jetliner before two of the planes crashed and killed 346 people, according to court papers filed Friday. Under the 'agreement in principle,' which still needs to be finalized, Boeing would pay and invest more than US$1.1 billion, including an additional $445 million for the crash victims' families, the Justice Department said. In return, the department has agreed to dismiss the fraud charge against Boeing, allowing the manufacturer to avoid a possible criminal conviction that could have jeopardized the company's status as a federal contractor, according to experts. '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 Justice Department 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.' Boeing on Friday declined to comment. 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. '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 for many of the families in the long-running case, said in a statement earlier this week. Democratic Sens. Elizabeth Warren and Richard Blumenthal had urged the Justice Department not to let the company avoid prosecution, saying in a letter to Attorney General Pam Bondi this week that any deal allowing the company and its executives to 'avoid accountability would be a serious mistake.' 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, called MCAS, 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 worldwide until the company redesigned MCAS to make it less powerful and to use signals from two sensors, not just one. The Justice Department charged Boeing in 2021 with deceiving FAA regulators about the software, which did not exist in older 737s, 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. Federal prosecutors, however, last year 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 a potentially lengthy public trial. But in December, U.S. District Judge Reed O'Connor in Fort Worth 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. The plea deal had called for an independent monitor to be named to oversee Boeing's safety and quality procedures for three years. Under the agreement announced Friday, Boeing must retain an 'independent compliance consultant' who will make recommendations for 'further improvement' and report back to the government, according to court papers. Alanna Durkin Richer, The Associated Press
Washington Post
23-05-2025
- Business
- Washington Post
Justice Department reaches deal to allow Boeing to avoid prosecution over 737 Max crashes
WASHINGTON — The Justice Department has reached a deal with Boeing that will allow the airplane giant to avoid criminal prosecution for allegedly misleading U.S. regulators about the 737 Max jetliner before two of the planes crashed and killed 346 people, according to court papers filed Friday. Under the 'agreement in principle,' which still needs to be finalized, Boeing would pay and invest more than $1.1 billion, including an additional $445 million for the crash victims' families, the Justice Department said.
