Latest news with #ReedO'Connor
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Business Standard
2 days ago
- Business
- Business Standard
Families of 737 crash victims urge US judge to reject Boeing deal
Lawyers for 15 families argued Boeing should stand trial for criminal conspiracy as the government had originally planned, to hold the company more accountable for the deaths of 346 people Bloomberg Family members of people killed in two fatal crashes of Boeing Co's 737 Max jets urged a federal judge to reject a proposed deal the company reached with US prosecutors that would allow the planemaker to avoid a criminal charge. Lawyers for 15 families argued Boeing should stand trial for criminal conspiracy as the government had originally planned, to hold the company more accountable for the deaths of 346 people, according to a court filing Wednesday. Some family members asked the judge to appoint a special prosecutor to oversee the case. 'The conspiracy charge against Boeing has been pending now for more than four years,' the families' lawyers said. 'Boeing has admitted all the facts necessary to prove it is guilty. And yet, the government now moves to dismiss the charge.' They added, 'It is difficult to imagine a case more deserving of a public trial than this one.' The US Justice Department in May asked US District Judge Reed O'Connor in Fort Worth to dismiss the case as part of a proposed settlement reached with Boeing. Under the deal, the planemaker agreed to pay more than $1.1 billion in fees and fines, while taking steps to strengthen internal quality and safety measures. In return, the company will avoid criminal prosecution. Prosecutors have argued that the deal 'secures meaningful accountability' and ensures Boeing faces penalties and oversight, an outcome they say would not be guaranteed if they took the case to trial. Asked to comment on the relatives' objections, a Boeing representative pointed to a May 29 company statement. '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 company said. The families also claimed language in the deal would obligate the government to not prosecute Boeing even if O'Connor rejects the motion to dismiss the case, which would skirt full judicial review. 'If this court approves the parties' maneuver in this widely publicized case, then this unprecedented approach will likely become the blueprint for all future dismissal motions in federal criminal prosecutions,' they said in the filing. In a separate filing, some family members asked the judge to appoint an independent prosecutor to 'restore integrity to these proceedings and ensure that justice — rather than politics — guides the resolution of this matter.' Relatives of crash victims have spent years fighting for harsher penalties for Boeing following the two fatal crashes of its 737 Max jet in 2018 and 2019. Both crashes were linked to a flawed flight control system on the jets. The families said the fatal Air India crash earlier this month involving a Boeing 787 Dreamliner shows that 'the stakes for aviation safety are very high.' The cause of the crash remains under investigation. To be sure, some families support the settlement. But those who want Boeing to go to trial said the company had dangled money 'in front of the families, apparently hoping that it will lead them to back off their efforts to hold Boeing accountable for killing their loved ones. And Boeing's offer appears to have had the desired effect, at least with respect to a few families.' If O'Connor agrees to a dismissal, it would end the long-running criminal case against Boeing over the crashes. But it would also mark a notable reversal in the proceedings. Just last year, Boeing had agreed to plead guilty to the pending criminal conspiracy charge under a deal that was ultimately rejected by O'Connor. Under the new settlement Boeing will admit to the underlying accusation of 'conspiracy to obstruct and impede the lawful operation of the Federal Aviation Administration Aircraft Evaluation Group,' but that admission does not constitute a guilty plea. The government said it could refile criminal charges against the company if Boeing is accused of violating the terms of the two-agreement. Some family members dispute that claim, saying the statute of limitations has already expired. The agreement requires Boeing to pay a total of $1.1 billion in assorted fines and fees. The total includes: $487.2 million for a criminal penalty, half of which the company already paid to the government during an earlier phase of the case $444.5 million for a new 'Crash-Victims Beneficiaries Fund' that will be divided evenly by crash victim $455 million in investments to bolster its compliance, safety and quality programs Boeing would be required to retain a so-called independent compliance consultant to oversee its efforts to improve the effectiveness of its anti-fraud compliance and ethics program. The consultant will be expected to make recommendations for improvements and report their findings directly to the government. The case is US v. Boeing, 21-cr-005, US District Court, Northern District of Texas (Fort Worth).
Straits Times
2 days ago
- Business
- Straits Times
Families of 737 crash victims urge rejection of Boeing deal
NEW YORK – Family members of people killed in two fatal crashes of Boeing's 737 Max jets urged a federal judge to reject a proposed deal the company reached with US prosecutors that would allow the planemaker to avoid a criminal charge. Lawyers for 15 families argued Boeing should stand trial for criminal conspiracy as the government had originally planned, to hold the company more accountable for the deaths of 346 people, according to a court filing on June 18. Some family members asked the judge to appoint a special prosecutor to oversee the case. 'The conspiracy charge against Boeing has been pending now for more than four years,' the families' lawyers said. 'Boeing has admitted all the facts necessary to prove it is guilty. And yet, the government now moves to dismiss the charge.' They added, 'It is difficult to imagine a case more deserving of a public trial than this one.' The US Justice Department in May asked US District Judge Reed O'Connor in Fort Worth to dismiss the case as part of a proposed settlement reached with Boeing. Under the deal, the planemaker agreed to pay more than US$1.1 billion (S$1.41 billion) in fees and fines, while taking steps to strengthen internal quality and safety measures. In return, the company will avoid criminal prosecution. Prosecutors have argued that the deal 'secures meaningful accountability' and ensures Boeing faces penalties and oversight, an outcome they say would not be guaranteed if they took the case to trial. Asked to comment on the relatives' objections, a Boeing representative pointed to a May 29 company statement. '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 company said. In June 18's filing, lawyers for family members who oppose the agreement said it would essentially allow the company to 'buy its way out of a criminal conviction'. The families also claimed language in the deal would obligate the government to not prosecute Boeing even if Mr O'Connor rejects the motion to dismiss the case, which would skirt full judicial review. 'If this court approves the parties' maneuver in this widely publicised case, then this unprecedented approach will likely become the blueprint for all future dismissal motions in federal criminal prosecutions,' they said in the filing. In a separate filing, some family members asked the judge to appoint an independent prosecutor to 'restore integrity to these proceedings and ensure that justice – rather than politics – guides the resolution of this matter.' Relatives of crash victims have spent years fighting for harsher penalties for Boeing following the two fatal crashes of its 737 Max jet in 2018 and 2019. Both crashes were linked to a flawed flight control system on the jets. The families said the fatal Air India crash earlier this month involving a Boeing 787 Dreamliner shows that 'the stakes for aviation safety are very high'. The cause of the crash remains under investigation. To be sure, some families support the settlement. But those who want Boeing to go to trial said the company had dangled money 'in front of the families, apparently hoping that it will lead them to back off their efforts to hold Boeing accountable for killing their loved ones. And Boeing's offer appears to have had the desired effect, at least with respect to a few families'. If Mr O'Connor agrees to a dismissal, it would end the long-running criminal case against Boeing over the crashes. But it would also mark a notable reversal in the proceedings. Just in 2024, Boeing had agreed to plead guilty to the pending criminal conspiracy charge under a deal that was ultimately rejected by Mr O'Connor. Under the new settlement Boeing will admit to the underlying accusation of 'conspiracy to obstruct and impede the lawful operation of the Federal Aviation Administration Aircraft Evaluation Group,' but that admission does not constitute a guilty plea. The government said it could refile criminal charges against the company if Boeing is accused of violating the terms of the two-agreement. Some family members dispute that claim, saying the statute of limitations has already expired. The agreement requires Boeing to pay a total of US$1.1 billion in assorted fines and fees. The total includes: US$487.2 million for a criminal penalty, half of which the company already paid to the government during an earlier phase of the case US$444.5 million for a new 'crash-victims beneficiaries fund' that will be divided evenly by crash victim US$455 million in investments to bolster its compliance, safety and quality programs Boeing would be required to retain a so-called independent compliance consultant to oversee its efforts to improve the effectiveness of its anti-fraud compliance and ethics program. The consultant will be expected to make recommendations for improvements and report their findings directly to the government. BLOOMBERG Join ST's Telegram channel and get the latest breaking news delivered to you.
Mint
2 days ago
- Business
- Mint
Families of 737 Crash Victims Urge Rejection of Boeing Deal
(Bloomberg) -- Family members of people killed in two fatal crashes of Boeing Co.'s 737 Max jets urged a federal judge to reject a proposed deal the company reached with US prosecutors that would allow the planemaker to avoid a criminal charge. Lawyers for 15 families argued Boeing should stand trial for criminal conspiracy as the government had originally planned, to hold the company more accountable for the deaths of 346 people, according to a court filing Wednesday. 'The conspiracy charge against Boeing has been pending now for more than four years,' the families' lawyers said. 'Boeing has admitted all the facts necessary to prove it is guilty. And yet, the government now moves to dismiss the charge.' They added, 'It is difficult to imagine a case more deserving of a public trial than this one.' The US Justice Department in May asked US District Judge Reed O'Connor in Fort Worth to dismiss the case as part of a proposed settlement reached with Boeing. Under the deal, the planemaker agreed to pay more than $1.1 billion in fees and fines, while taking steps to strengthen internal quality and safety measures. In return, the company will avoid criminal prosecution. Prosecutors have argued that the deal 'secures meaningful accountability' and ensures Boeing faces penalties and oversight, an outcome they say would not be guaranteed if they took the case to trial. A representative of Boeing didn't immediately respond to a request for comment. In Wednesday's filing, lawyers for family members who oppose the agreement said it would essentially allow the company to 'buy its way out of a criminal conviction.' The families also claimed language in the deal would obligate the government to not prosecute Boeing even if O'Connor rejects the motion to dismiss the case, which would skirt full judicial review. 'If this court approves the parties' maneuver in this widely publicized case, then this unprecedented approach will likely become the blueprint for all future dismissal motions in federal criminal prosecutions,' they said in the filing. Relatives of crash victims have spent years fighting for harsher penalties for Boeing following the two fatal crashes of its 737 Max jet in 2018 and 2019. Both crashes were linked to a flawed flight control system on the jets. The families said the fatal Air India crash earlier this month involving a Boeing 787 Dreamliner shows that 'the stakes for aviation safety are very high.' The cause of the crash remains under investigation. To be sure, some families support the settlement. But those who want Boeing to go to trial said the company had dangled money 'in front of the families, apparently hoping that it will lead them to back off their efforts to hold Boeing accountable for killing their loved ones. And Boeing's offer appears to have had the desired effect, at least with respect to a few families.' If O'Connor agrees to a dismissal, it would end the long-running criminal case against Boeing over the crashes. But it would also mark a notable reversal in the proceedings. Just last year, Boeing had agreed to plead guilty to the pending criminal conspiracy charge under a deal that was ultimately rejected by O'Connor. Under the new settlement Boeing will admit to the underlying accusation of 'conspiracy to obstruct and impede the lawful operation of the Federal Aviation Administration Aircraft Evaluation Group,' but that admission does not constitute a guilty plea. The government said it could refile criminal charges against the company if Boeing is accused of violating the terms of the two-agreement. Some family members dispute that claim, saying the statute of limitations has already expired. The agreement requires Boeing to pay a total of $1.1 billion in assorted fines and fees. The total includes: Boeing would be required to retain a so-called independent compliance consultant to oversee its efforts to improve the effectiveness of its anti-fraud compliance and ethics program. The consultant will be expected to make recommendations for improvements and report their findings directly to the government. The case is US v. Boeing, 21-cr-005, US District Court, Northern District of Texas (Fort Worth). --With assistance from Allyson Versprille. (Updates with outreach to Boeing for comment.) More stories like this are available on
Yahoo
2 days ago
- Business
- Yahoo
Boeing Could Avoid a Trial
Boeing's criminal trial has been paused as the court reviews an 11th-hour Department of Justice deal. Crash victims' families are urging the judge to reject the non-prosecution agreement. 10 stocks we like better than Boeing › Boeing (NYSE: BA) has faced a multitude of tribulations over the past decade. But the company recently got a reprieve from a trial that would've been its biggest yet. On June 2, U.S. District Judge Reed O'Connor removed Boeing's upcoming criminal trial from the docket, as the court considers a motion to dismiss a fraud case against the jet maker that stemmed from two deadly crashes (in 2018 and 2019) of 737 MAX aircraft. Investors are still awaiting the court's final decision, but things seem to be moving in a good direction. A crash of a Boeing Dreamliner last week in India knocked the stock down a bit, but it's up 14% so far this year. Boeing had been set to stand trial, starting on June 23, for allegedly misleading federal regulators about a stability-control system in the 737 MAX that played a role in the crashes of Lion Air Flight 610 in 2018 and Ethiopian Airlines Flight 302 in 2019. In total, 346 passengers died in the plane crashes. But in late May, the Department of Justice and Boeing came to terms on a non-prosecution agreement, and the DOJ promptly asked the presiding court to drop the case. As O'Connor weighs the 11th-hour motion to dismiss the case -- and considers the objections of the crash victims' families -- the stakes couldn't be higher for Boeing. If the court drops the case, Boeing avoids a potential felony conviction. It also dodges an ugly, high-profile criminal trial that would've kept Boeing in the news for all the wrong reasons. From a 30,000-foot view, it would lift a legal cloud that's been looming over the company since the 737 MAX tragedies, which could help clear the runway for Boeing to rebuild its reputation and restore investor confidence. Under federal law, O'Connor must consider the arguments of the crash victims' families, who have said they will fight the DOJ's motion to dismiss the case against Boeing. Their objections are due by June 18, after which the DOJ and Boeing will have a week to respond. It's worth noting that in December 2024, O'Connor rejected a proposed plea deal that would've established an "independent compliance monitor" to oversee Boeing's reform efforts, in addition to levying millions of dollars in financial penalties. In his ruling, O'Connor expressed concern that the agreement would "marginalize" the court by giving the government sole discretion over selecting and overseeing the compliance monitor. The judge also took issue with DEI (diversity, equity, and inclusion) language in the selection requirements. O'Connor noted that "numerous" victims' families voiced similar objections. The non-prosecution agreement that's on the table now doesn't include any DEI language. However, under the agreement, Boeing would get to pick an "independent compliance consultant" -- subject to DOJ approval -- excluding the court from oversight. That could raise a major red flag for O'Connor, given his previous ruling. Boeing stock has rallied 14% in 2025, with the stock sliding after last week's deadly crash of a Boeing 787 Dreamliner in India. Outside of that crash, investors have been buoyed by a string of contract wins and positive headlines this year: In March, the U.S. Air Force tapped Boeing to build its next-generation fighter aircraft, the F-47. On April 23, Boeing delivered a first-quarter earnings beat and reported a narrower-than-expected Q1 loss. In the Q1 earnings call, executives said Boeing is ramping up production of the 737 MAX and is on target to reach its goal of 38 jets per month this year. In May, Boeing and Qatar Airways announced that the airline will buy up to 210 Boeing widebody jets in a deal that the White House valued at $96 billion. Analysts expect the momentum to accelerate. Consensus estimates call for Boeing to grow earnings by 91% this year and a staggering 332% next year, making it back into positive territory. Wall Street seems to be buying into CEO Kelly Ortberg's assertion that Boeing is "moving in the right direction." If O'Connor grants the DOJ's request to toss the criminal trial, it will lift a legal weight that's been dragging on the stock since the 737 MAX crisis began. That kind of clarity could help fuel the next leg of Boeing's recovery -- and potentially send the stock even higher. 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Boeing Could Avoid a Trial was originally published by The Motley Fool Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
05-06-2025
- Business
- Yahoo
Boeing's $444 Million Gamble: Will One Judge Shatter the Deal That Saves It From Criminal Trial?
Boeing (NYSE:BA) just made a move that could wipe a years-long legal headache off its booksbut only if a federal judge signs off. The company has reached a tentative deal with the U.S. Department of Justice that would let it avoid prosecution for misleading regulators over the 737 Max crashes in 2018 and 2019. The agreement, revealed in a securities filing, includes $444.5 million in compensation to victims' families and allows Boeing to withdraw its earlier guilty plea. On paper, it looks like a clean break. In reality? It's anything but done. Warning! GuruFocus has detected 6 Warning Signs with BA. That's because the families of the crash victims aren't letting this slide. They've challenged the agreement, arguing it's far too lenient and strips them of their right to a real reckoning. The judge overseeing the case, Reed O'Connor, has already disrupted prior deals over lack of transparency and weak oversight. He's now giving families until June 18 to file formal objections, and the DOJ and Boeing will have just one week to counter. It's a tight windowand a tense one. This legal saga dates back to a deferred prosecution deal from 2021, when Boeing paid $2.5 billion and promised reform. That plan nearly ran its courseuntil January 2024, when a 737 Max door blew off midflight and reignited public and prosecutorial fury. Now, Boeing's shot at resolution depends entirely on one courtroom. If the deal sticks, it could help the company reset its reputation and rebuild investor trust. But if it collapses, Boeing could be staring at a full-blown criminal trialwith all the volatility that brings. This article first appeared on GuruFocus.
