Boeing to get 'sweetheart deal' - victims' lawyer

BusinessJuly 3, 20242 min read

Boeing to get 'sweetheart deal' - victims' lawyer

Boeing to get 'sweetheart deal' - victims' lawyer

Boeing to get 'sweetheart deal' - victims' lawyer

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A lawyer representing the families of victims from two fatal Boeing 737 Max crashes has expressed strong objections to a new plea deal being prepared by the US government. Paul Cassell, the lawyer, claims that the deal, which he learned about directly from the Justice Department, includes a small fine, three years of probation, and independent safety audits. Boeing did not respond to the BBC's request for comment, and the Justice Department declined to provide a statement. This news comes as Boeing announced a deal to acquire Spirit AeroSystems, an aerospace supplier, in an effort to improve quality and safety. Spirit AeroSystems manufactured the fuselage that experienced a mid-flight blowout on an Alaska Airlines 737 Max 9 jet in January, raising concerns about Boeing's safety standards.

Last month, families of the crash victims expressed their dissatisfaction with Boeing. The Justice Department had previously stated that Boeing violated a 2021 settlement related to the crashes, which resulted in the deaths of 346 people. Paul Cassell emphasized that the memory of the 346 victims demands more justice than what the current plea deal offers. The crashes, both involving Boeing's 737 Max aircraft, occurred within six months of each other. The first crash involved Indonesia's Lion Air in October 2018, followed by an Ethiopian Airlines flight in March 2019. Both incidents were linked to faulty flight control systems.

In a letter to the Justice Department, Paul Cassell revealed that the families had been seeking prosecutions of Boeing's top executives at the time of the crashes and a fine of $24. 8 billion for what he described as the deadliest corporate crime in US history. The Justice Department has until July 7 to decide whether to revive a criminal charge of fraud brought against Boeing in 2021. This charge has been dormant since Boeing acknowledged in a settlement that it had misled air-safety regulators about aspects of the 737 Max and promised to create a new compliance system to detect and prevent further fraud. Under the 2021 deal, Boeing agreed to pay a $2. 5 billion settlement, and prosecutors agreed to ask the court to drop the criminal charge after three years if the company adhered to certain stipulations. However, in May, the Justice Department stated that Boeing had breached the agreement by failing to design, implement, and enforce a compliance and ethics program to prevent and detect violations of US fraud laws throughout its operations.

Earlier this year, Boeing faced additional scrutiny when a door panel fell off a new 737 Max plane during an Alaska Airlines flight. The door had originally been fitted by Spirit AeroSystems, the airline supplier that Boeing is now acquiring in a deal worth $8. 3 billion, including debt. In a separate announcement, Boeing's European competitor, Airbus, which is also a major Spirit customer, revealed plans to take control of four Spirit factories located in the United States, France, and Morocco.

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probationJustice Departmentfraudfaultycontrol systemsSpirit AeroSystemsAlaska AirlinesEthiopian Airlines

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"A lawyer for the families of victims from two deadly Boeing 737 Max crashes says they are very unhappy with a new deal."

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"The lawyer, Paul Cassell, says the US government is planning to give Boeing a very easy deal."

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"This deal includes a small fine, three years of probation, and safety checks."

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