Families of 346 who died in two Boeing crashes slam 'sweetheart' plea deal after plane maker agreed to plead guilty and pay $243.6m to avoid a show trial
The families of the 346 victims who died in two separate Boeing crashes have slammed the $243.6million 'sweetheart' plea deal that will see the company avoid a criminal trial.
Under the agreement, Boeing will plead guilty to a criminal fraud charge stemming from the fatal crashes in Indonesia in October 2018 and in Ethiopia less than five months later that killed a combined 346 people.
Boeing must also pay the hefty fine, invest at least $455million in compliance and safety programs, and have an independent monitor oversee Boeing's safety and quality procedures for three years.
The plea deal must now be approved by a federal judge in Texas in order to take effect, but attorneys representing some of the families have said they are going to pressure the judge to reject the agreement.
'This sweetheart deal fails to recognize that because of Boeing's conspiracy, 346 people died,' said attorney Paul Cassell. 'Through crafty lawyering between Boeing and [the] DOJ, the deadly consequences of Boeing's crimes are hidden.'
On October 29, 2018, the Boeing 737 MAX operating the Lion Air Flight 610 crashed into the Java Sea 13 minutes after takeoff, killing all 189 passengers and crew
An Oromo man hired to assist forensic investigators walks by a pile of twisted airplane debris at the crash site of an Ethiopian airways operated Boeing 737 MAX aircraft on March 16, 2019
Families of crash victims immediately filed an objection to the plea deal, arguing that it 'unfairly makes concessions to Boeing that other criminal defendants would never receive'.
They have pushed for a criminal trial, arguing that it may prove Boeing executives knew they were deceiving the Federal Aviation Administration about its faulty flight-control system.
They also want the Justice Department to prosecute those officials.
'Boeing has paid fines many a time and it doesn't seem to make any change,' said Ike Riffel, of Redding, California, whose sons died in the Ethiopian Airlines crash.
'When people start going to prison, that's when you are going to see a change.'
Cassell, in a statement to CNN, added: 'This deceptive and generous deal is clearly not in the public interest.'
The relatives, who are seeking a public trial on the charges against Boeing, will ask the court to reject the plea deal at an upcoming hearing.
Boeing executives have accepted a $243.6million plea deal that would see the company avoid a criminal trial over a pair of deadly 737 Max crashes
Families of crash victims immediately filed an objection to the plea deal, arguing that it 'unfairly makes concessions to Boeing that other criminal defendants would never receive'. Pictured: Family members hold placards of their lost loved ones from Boeing 737 Max plane crashes during Senate testimony of Boeing CEO Dave Calhoun on June 18, 2024
Court papers filed in Texas on Sunday said the company had agreed to plead guilty to 'conspiracy to defraud the United States' during the certification of MAX airplanes.
The plea deal sees Boeing avoid a criminal trial, instead agreeing to a series of terms including a $243.6million fine on top of the same sum already paid.
The company will also be required to make a minimum investment of $455million in 'compliance and safety programs'.
Such changes at the firm will be overseen by an independent monitor appointed by the government for a three-year term.
The company's board of directors will also be required to meet the families of crash victims.
Boeing CEO David Calhoun apologized to the crash victim's families at a recent Senate hearing, saying: 'I'm deeply sorry… my whole team at Boeing, everybody worldwide past and present.'
The plea deal would not give the company immunity for other incidents, including a panel that blew off a Max jetliner during an Alaska Airlines flight in January
Attorneys representing some of the families of the crash have said they are going to pressure the judge to reject the agreement
The agreement came just days after federal prosecutors gave Boeing the choice of entering a guilty plea and paying the fine or facing a trial on felony criminal charges of conspiracy to defraud the United States.
They have argued that the aerospace company deceived regulators who approved the airplane and pilot-training requirements.
The judge - who has previously criticized what he called 'Boeing's egregious criminal conduct' - could then approve the plea deal, or he could completely reject the agreement, which would likely prompt the Justice Department to create new negotiations with Boeing.
But even then the plea deal would only cover the company's wrongdoing before the crashes, in which all of the passengers and crew members perished.
It would not give the company immunity for other incidents, including a panel that blew off a Max jetliner during an Alaska Airlines flight in January, and would not cover any current or former Boeing officials - only the company itself.
Pictured: Officials inspect engine of the crashed Lion Air jet on November 4, 208, in Jakarta, Indonesia. An Indonesian investigation found a Lion Air flight that crashed and killed 189 people five years ago was doomed by a combination of aircraft design flaws, inadequate training and maintenance problems
Pictured: Shoes found during the search for victims from the Lion Air flight JT 610 are collected at the Jakarta International Container Terminal in Jakarta, on October 31, 2018
Pictured: Rescuers carry body bags containing the remains of the victims of Lion Air crash at Tanjung Priok Port in Jakarta, Indonesia, Friday, November 2, 2018
In the two crashes - in Indonesia in 2018 and in Ethiopia in 2019 - MCAS automatically pointed the nose of the plane down based on faulty sensor readings, and pilots were unable to regain control.
On October 29, 2018, the Boeing 737 MAX operating the Lion Air Flight 610 crashed into the Java Sea 13 minutes after takeoff, killing all 189 passengers and crew.
The pilot at the time did not know that the software could push the nose of the plane down.
Five months later, on March 10, 2019, the Boeing 737 MAX 8 aircraft which operated Ethiopian flight 302 crashed near the town of Bishoftu, Ethiopia, six minutes after takeoff, killing all 157 people aboard.
Pilots on that plane knew about the software issue, but were unable to control the plane when the software activated based on information from a faulty sensor.
But Boeing downplayed the significance of the system, and didn´t overhaul it until after the second crash.
On March 10, 2019, the Boeing 737 MAX 8 aircraft which operated Ethiopian flight 302 crashed near the town of Bishoftu, Ethiopia
Pictured: A bouquet of flowers is placed in front of a pile of debris at the scene of the Ethiopian Airlines Flight 302 crash on March 13, 2019
Pictured: Investigators and recovery workers inspect a second engine after it is recovered from a crater at the scene of the Ethiopian Airlines Flight 302 crash on March 13, 2019 in Ejere, Ethiopia. All 157 passengers and crew perished after the Ethiopian Airlines Boeing 737 Max 8 Flight came down six minutes after taking off from Bole Airport
The Justice Department investigated Boeing in 2021, and charged the company with deceiving FAA regulators about the software - which did not exist in older 737s and about how much training the pilots would need to fly the plane safely.
After secret negotiations, the government agreed not to prosecute Boeing on a charge of defrauding the United States by deceiving regulators who approved the plane.
In exchange, the company paid $2.5 billion - a $243.6 million fine, a $500 million fund for victim compensation, and nearly $1.8 billion to airlines whose Max jets were grounded.
But in May, officials determined the company breached the agreement - setting the stage for criminal charges.
Glenn Leon, head of the Justice Department criminal division's fraud section, said in a letter filed in Texas federal court that Boeing failed to make changes to prevent it from violating federal anti-fraud laws - a condition of the the 2021 settlement.
The department claims that Boeing failed to 'design, implement, and enforce a compliance and ethics program to prevent and detect violations of the US fraud laws', according to NBC.
The Justice Department investigated Boeing in 2021, and charged the company with deceiving FAA regulators about the software but decided not to charge the aerospace company
Lawmakers have since also released a report with explosive allegations from a Boeing quality insurance inspector, Sam Mohawk, who said the company installed faulty parts onto planes and that he was later told by his managers to conceal the evidence from government regulators
Boeing officials, however, denied those claims.
'We believe that we have honored the terms of that agreement, and look forward to the opportunity to respond to the Department on this issue,' a spokesperson said at the time.
'As we do so, we will engage with the Department with the utmost transparency, as we have throughout the entire term of the agreement, including in response to their questions following the Alaska Airlines 1282 accident.'
