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RTHK
03-07-2025
- Business
- RTHK
US court pushed to back 737 Max non-prosecution deal
US court pushed to back 737 Max non-prosecution deal Boeing 737 Max aircraft are assembled at the company's plant in Renton, Washington. File photo: Reuters Boeing and the US Justice Department have asked a judge to approve an agreement that allows the company to avoid prosecution despite objections from relatives of some of the 346 people killed in two 737 Max crashes in 2018 and 2019. The deal enables Boeing to avoid being branded a convicted felon and to escape oversight from an independent monitor for three years that was part of a plea deal struck in 2024 to a criminal fraud charge that it misled US regulators about a crucial flight control system on the 737 Max, its best-selling jet. Boeing argued the executive branch solely has the power to decide whether to bring or maintain a prosecution. "Because it is entirely within the government's discretion whether to pursue a criminal prosecution, an agreement not-to-prosecute does not require court approval," Boeing said, asking a judge to reject objections filed by the families and grant the government's motion to dismiss the charge. "Disputing the government's considered assessment of litigation risk, the calculation of the maximum fine, or the appropriate mechanism for compliance oversight, do not demonstrate – even remotely – that the government was clearly motivated by considerations contrary to the public interest." The Justice Department said in a court filing it acted in good faith and in accordance with the law, agreeing to dismiss the case for an agreement "that secures a significant fine, compliance improvements, and a substantial victim compensation fund". The families cited Judge Reed O'Connor's statement in 2023 that "Boeing's crime may properly be considered the deadliest corporate crime in US history". They argue dismissal is not in the public interest and obligations imposed on Boeing are not enforceable. If the government declined to move forward with the prosecution even if the court rejected the deal, O'Connor should appoint a special prosecutor, the families said. Under the deal, Boeing agreed to pay an additional US$444.5 million into a crash victims fund to be divided evenly per crash victim, on top of a new US$243.6 million fine. Boeing agreed last July to plead guilty to a criminal fraud conspiracy charge after the two fatal 737 Max crashes in Indonesia and Ethiopia. Under the non-prosecution agreement, Boeing will pay US$1.1 billion in total, including the fine, compensation to families and more than US$455 million to strengthen the company's compliance, safety and quality programs. The vast majority of the families have settled civil suits with Boeing and collectively have been "paid several billion dollars", the Justice Department said. (AFP)
Business Times
03-07-2025
- Business
- Business Times
Boeing and Justice Department seek judge's approval for deal opposed by crash victims' families
BOEING and the Justice Department on Wednesday asked a US judge to approve an agreement that allows the company to avoid prosecution despite objections from relatives of some of the 346 people killed in two 737 MAX crashes in 2018 and 2019. The deal enables Boeing to avoid being branded a convicted felon and to escape oversight from an independent monitor for three years that was part of a plea deal struck in 2024 to a criminal fraud charge that it misled US regulators about a crucial flight control system on the 737 MAX, its best-selling jet. Boeing argued the executive branch solely has the power to decide whether to bring or maintain a prosecution. 'Because it is entirely within the government's discretion whether to pursue a criminal prosecution, an agreement not-to-prosecute does not require court approval,' Boeing said, asking a judge to reject objections filed by the families and grant the government's motion to dismiss the charge. 'Disputing the government's considered assessment of litigation risk, the calculation of the maximum fine, or the appropriate mechanism for compliance oversight, do not demonstrate - even remotely - that the government was clearly motivated by considerations contrary to the public interest.' The Justice Department said in a court filing it acted in good faith and in accordance with the law, agreeing to dismiss the case for an agreement 'that secures a significant fine, compliance improvements, and a substantial victim compensation fund.' BT in your inbox Start and end each day with the latest news stories and analyses delivered straight to your inbox. Sign Up Sign Up The families cited Judge Reed O'Connor's statement in 2023 that 'Boeing's crime may properly be considered the deadliest corporate crime in US history.' They argue dismissal is not in the public interest and obligations imposed on Boeing are not enforceable. If the government declined to move forward with the prosecution even if the court rejected the deal, O'Connor should appoint a special prosecutor, the families said. Boeing and the Justice Department both asked O'Connor to reject appointing a special prosecutor. Under the deal, Boeing agreed to pay an additional US$444.5 million into a crash victims fund to be divided evenly per crash victim, on top of a new US$243.6 million fine. Boeing in July 2024 agreed to plead guilty to a criminal fraud conspiracy charge after the two fatal 737 MAX crashes in Indonesia and Ethiopia. Under the non-prosecution agreement, Boeing will pay US$1.1 billion in total, including the fine, compensation to families and more than US$455 million to strengthen the company's compliance, safety and quality programmes. The vast majority of the families have settled civil suits with Boeing and collectively have been 'paid several billion dollars,' the Justice Department said. REUTERS
Straits Times
03-07-2025
- Business
- Straits Times
Boeing and Justice Department seek judge's approval for deal opposed by crash victims' families
Sign up now: Get ST's newsletters delivered to your inbox The deal would allow Boeing to escape oversight from an independent monitor for three years. Boeing and the US Justice Department on July 2 asked a US judge to approve an agreement that allows the company to avoid prosecution despite objections from relatives of some of the 346 people killed in two 737 Max crashes in 2018 and 2019. The deal enables Boeing to avoid being branded a convicted felon and to escape oversight from an independent monitor for three years that was part of a plea deal struck in 2024 to a criminal fraud charge that it misled US regulators about a crucial flight control system on the 737 Max, its best-selling jet. Boeing argued the executive branch solely has the power to decide whether to bring or maintain a prosecution. 'Because it is entirely within the government's discretion whether to pursue a criminal prosecution, an agreement not-to-prosecute does not require court approval,' Boeing said, asking a judge to reject objections filed by the families and grant the government's motion to dismiss the charge. 'Disputing the government's considered assessment of litigation risk, the calculation of the maximum fine, or the appropriate mechanism for compliance oversight, do not demonstrate - even remotely - that the government was clearly motivated by considerations contrary to the public interest.' The Justice Department said in a court filing it acted in good faith and in accordance with the law, agreeing to dismiss the case for an agreement 'that secures a significant fine, compliance improvements, and a substantial victim compensation fund.' The families cited Judge Reed O'Connor's statement in 2023 that 'Boeing's crime may properly be considered the deadliest corporate crime in US history.' They argue dismissal is not in the public interest and obligations imposed on Boeing are not enforceable. If the government declined to move forward with the prosecution even if the court rejected the deal, Judge O'Connor should appoint a special prosecutor, the families said. Boeing and the Justice Department both asked Judge O'Connor to reject appointing a special prosecutor. Under the deal, Boeing agreed to pay an additional US$444.5 million (S$566.1 million) into a crash victims fund to be divided evenly per crash victim, on top of a new US$243.6 million fine. Boeing in July 2024 agreed to plead guilty to a criminal fraud conspiracy charge after the two fatal 737 Max crashes in Indonesia and Ethiopia. Under the non-prosecution agreement, Boeing will pay US$1.1 billion in total, including the fine, compensation to families and more than US$455 million to strengthen the company's compliance, safety and quality programs. The vast majority of the families have settled civil suits with Boeing and collectively have been 'paid several billion dollars,' the Justice Department said. REUTERS
CNBC
18-06-2025
- Business
- CNBC
Boeing 737 MAX victims' relatives ask judge to reject deal ending criminal case
Relatives of some of the 346 people killed in two Boeing MAX crashes in 2018 and 2019 asked a federal judge on Wednesday to reject a deal between the Justice Department and the plane maker that allows the company to avoid prosecution in a criminal fraud case. The agreement enables Boeing to avoid being branded a convicted felon and to escape oversight from an independent monitor for three years that was part of a plea deal struck in 2024. The families cited Judge Reed O'Connor's statement in 2023 that "Boeing's crime may properly be considered the deadliest corporate crime in U.S. history." They argue dismissal of the case is not in the public interest and the obligations imposed on Boeing are not enforceable. They said the Justice Department has opted not to wait for a ruling but "has already contractually obligated itself not to further prosecute Boeing, regardless of how the court rules." If the government declined to move forward with the prosecution even if the court rejected the deal, O'Connor should appoint a special prosecutor, the families told the judge. Under the deal, Boeing agreed to pay an additional $444.5 million into a crash victims fund to be divided evenly per crash victim, on top of a $243.6-million fine. Boeing in July agreed to plead guilty to a criminal fraud conspiracy charge after the two fatal 737 MAX crashes in Indonesia and Ethiopia. Boeing will pay $1.1 billion in total, including the fine, compensation to families and over $455 million to strengthen the company's compliance, safety, and quality programs. The Justice Department said in late May the deal "secures meaningful accountability, delivers substantial and immediate public benefits, and brings finality to a difficult and complex case whose outcome would otherwise be uncertain." The department did not immediately respond to a request for comment. The vast majority of the families have settled civil suits with Boeing and collectively have been "paid several billion dollars," the Justice Department said. Boeing, which did not immediately comment on Wednesday, will no longer face oversight by an independent monitor under the agreement, but will hire a compliance consultant. Boeing had previously been set to go on trial June 23 on a charge it misled U.S. regulators about a crucial flight control system on the 737 MAX, its best-selling jet.
Newsweek
05-06-2025
- Politics
- Newsweek
Donald Trump Scores Major Legal Win In Texas
Based on facts, either observed and verified firsthand by the reporter, or reported and verified from knowledgeable sources. Newsweek AI is in beta. Translations may contain inaccuracies—please refer to the original content. 🎙️ Voice is AI-generated. Inconsistencies may occur. President Donald Trump's administration has secured a legal win in Texas after a federal judge blocked a law providing college students without legal residency access to reduced in-state tuition. U.S. District Judge Reed O'Connor's decision on Wednesday was announced just hours after the Justice Department sued to block the policy, which was introduced in 2001. The DOJ's move was backed by Texas' Republican Attorney General Ken Paxton. "Today, I entered a joint motion along with the Trump Administration opposing a law that unconstitutionally and unlawfully gave benefits to illegal aliens that were not available to American citizens," Paxton said in a statement. "Ending this discriminatory and un-American provision is a major victory for Texas." Newsweek contacted the Department of Justice for comment on Thursday outside of regular working hours. President Donald Trump at Joint Base Andrews in Maryland last week. President Donald Trump at Joint Base Andrews in Maryland last week. SAUL LOEB/AFP/GETTY This is a breaking story. More to follow.
