Cheddar RSS

Boeing will avoid prosecution over 737 Max crashes under deal


Listen Later

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 Friday.

Under the “agreement in principle” that 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. In return, the department would dismiss the fraud charge in the criminal case against the aircraft manufacturer.

“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.”

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.

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.

Boeing avoided prosecution in 2021 by reaching a $2.5 billion settlement with the Justice Department that included a previous $243.6 million fine.

A year ago, 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 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.

___

...more
View all episodesView all episodes
Download on the App Store

Cheddar RSSBy Cheddar


More shows like Cheddar RSS

View all
NPR News Now by NPR

NPR News Now

14,311 Listeners

The Excerpt by USA TODAY

The Excerpt

1,201 Listeners

The Daily by The New York Times

The Daily

111,562 Listeners

Up First from NPR by NPR

Up First from NPR

56,170 Listeners

The NewsWorthy by Erica Mandy

The NewsWorthy

1,363 Listeners

American Fever Dream by Betches Media

American Fever Dream

2,121 Listeners

9 to 5ish with theSkimm by theSkimm

9 to 5ish with theSkimm

1,870 Listeners

Start Here by ABC News

Start Here

6,351 Listeners

Skimm This by theSkimm

Skimm This

3,621 Listeners

Fiction - Comedy Fiction by The Sunset Explorers

Fiction - Comedy Fiction

6,447 Listeners

Short Wave by NPR

Short Wave

6,244 Listeners

BuzzFeed Daily by BuzzFeed & iHeartPodcasts

BuzzFeed Daily

573 Listeners

Consider This from NPR by NPR

Consider This from NPR

6,045 Listeners

Morning Announcements by Betches Media

Morning Announcements

1,474 Listeners

We Can Do Hard Things by Glennon Doyle and Audacy

We Can Do Hard Things

41,337 Listeners