Latest news with #crashvictims
Yahoo
03-07-2025
- Business
- Yahoo
Boeing and Justice Department seek judge's approval for deal opposed by crash victims' families
By David Shepardson (Reuters) -Boeing and the Justice Department on Wednesday asked a U.S. 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 U.S. 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 U.S. 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 $444.5 million into a crash victims fund to be divided evenly per crash victim, on top of a new $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 $1.1 billion in total, including the fine, compensation to families and more than $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.
BBC News
05-06-2025
- Business
- BBC News
Boeing agrees $1.1bn deal over fatal 737 Max crashes
Boeing has agreed to pay $1.1bn (£811.5m) to avoid prosecution over two fatal airline crashes that killed 346 payments are part of a settlement with the US Justice Department (DOJ) over crashes involving 737 Max jets in October 2018 and March agreement includes the US aviation giant paying $444.5m to families of crash victims. It will also put $455m towards improving its compliance, safety and quality the deal, Boeing also agreed to pay a criminal penalty of $487.2m, with half of that already paid in 2021. "The Department agreed that it will not further criminally prosecute the company, said Boeing in a Securities and Exchange Commission the deal is approved by a federal judge the plane maker will avoid a criminal fraud trial, which was due to begin on 23 BBC has contacted Boeing and 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.
BreakingNews.ie
30-05-2025
- Business
- BreakingNews.ie
US formally moves to dismiss criminal case against Boeing over crashes
The US Justice Department has formally moved to dismiss a criminal fraud charge against Boeing and 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. The deal, announced last week, will allow the American aircraft manufacturer to avoid criminal prosecution for allegedly misleading US regulators about the 737 Max jetliner before the planes crashed less than five months apart in 2018 and 2019. Advertisement The 'agreement in principle' will require the company to pay and invest more than 1.1 billion dollars (£814.7 million), including an additional 445 million dollars (£329 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 jeopardised the company's status as a federal contractor, experts have said. 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 cancel the trial. Mr O'Connor on Thursday ordered all the lawyers to present him with a briefing schedule on the government's motion by June 4. Advertisement 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,' Ms Milleron said. Advertisement '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 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,' a Boeing spokesperson said in the statement. Lawyer Mark Lindquist, who represents dozens of the victims' families, said in a statement on Thursday that although he had wanted to see a more vigorous prosecution, he did not think it was going to happen. Advertisement 'At this point, I can only hope the criminal case and the lawsuits motivated Boeing to improve safety,' Mr 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 (FAA) 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. Advertisement 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 dollar (£1.8 billion) settlement, including the 243.6 million dollar (£180 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, Mr O'Connor rejected the plea deal. The judge said the diversity, inclusion and equity (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.
Arab News
26-05-2025
- Business
- Arab News
US 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 US 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 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 on Friday 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 US 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 737Max 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, US 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.
Washington Post
18-05-2025
- Washington Post
Justice Department says it may drop criminal prosecution of Boeing over Max crashes
The Justice Department may drop its criminal prosecution of Boeing for allegedly misleading U.S. regulators about the 737 Max jetliner before two of the planes crashed and killed 346 people, according to a weekend court filing. The department said in a Saturday status report that two representatives had met with the families of some crash victims to discuss a potential pretrial resolution that would involve dismissing the criminal fraud charge against the aerospace company.
