Boeing Faces New Legal Challenge from Families Over ‘Sweetheart’ Plea Deal

Families of the victims of the 737 MAX crashes are challenging a proposed plea agreement between Boeing and the U.S. Department of Justice and have filed a motion in federal court to oppose the deal. The motion, submitted in district court in Texas by Naoise Connolly Ryan and other family members, seeks permission to file
Boeing Faces New Legal Challenge from Families Over ‘Sweetheart’ Plea Deal

Families of the victims of the 737 MAX crashes are challenging a proposed plea agreement between Boeing and the U.S. Department of Justice and have filed a motion in federal court to oppose the deal.

The motion, submitted in district court in Texas by Naoise Connolly Ryan and other family members, seeks permission to file an extended objection to the agreement, citing numerous concerns about its fairness and comprehensiveness.

The families’ motion takes issue with several aspects of the deal, including the lack of acknowledgment by Boeing that its actions led to the deaths of 346 people in the two crashes.

Family members of victims of Boeing’s safety failures react as Boeing CEO Dave Calhoun departs after testifying before the Senate Homeland Security Subcommittee on Investigations on Capitol Hill June 18, 2024. Francis Chung/POLITICO via AP Images

They also question the calculation of a proposed fine of $243.6 million, which they call “unexplained,” the selection of a corporate monitor for Boeing by the Justice Department rather than by the court, and “the outdated and misleading facts in the plea.”

“The plea has all the problems in it that the families feared it would have. We will file a strong objection to the preferential and sweetheart treatment Boeing is receiving,” Paul Cassell, an attorney representing 15 of the families, told Newsweek.

The deal permits Boeing to pay the fine over three years, with an independent monitor overseeing compliance during this period. A key provision likely to raise eyebrows among victims’ lawyers is the appointment of this independent compliance monitor during Boeing’s probation, who will work to reduce the risk of misconduct by the company.

“The terms of the plea deal haven’t changed since the DOJ filed the agreement in principle two weeks ago, so our thoughts on the matter remain the same: The families oppose the deal, which is nothing more than a slap on the wrist for Boeing,” said Erin R. Applebaum, an attorney representing families who lost loved ones in the Ethiopian Airlines 737 MAX crash in 2019.

Boeing’s plea agreement stems from its failure to provide complete and accurate information about the 737 MAX’s flight-control software to the Federal Aviation Administration (FAA). This omission contributed to the crashes in Indonesia in 2018 and Ethiopia in 2019. The FAA had been misled about the extent of pilot training required for the new software, which played a critical role in the fatal accidents.

Judge Reed O’Connor, who has overseen the Boeing case from the beginning, granted the families’ motion, allowing them to file another, more detailed motion and incorporated memorandum of law in opposition to the proposed plea agreement.

The families are permitted to submit a document of up to 48 pages, articulating their objections and concerns. The government and Boeing are likewise given an opportunity to file responses to the families’ motion.

‘A Sweetheart Deal’

Under the terms of the plea deal, Boeing has agreed to spend at least $455 million on enhancing its safety and compliance programs over the next three years, which is 75% more than its previously planned expenditures. The agreement also imposes a three-year probation period, extendable by one year if Boeing fails to meet the compliance requirements.

Lion Air flight JT 610 - Boeing737MAX
Shoes found during the search for victims from the ill-fated Lion Air flight JT 610 are collected at the Jakarta International Container Terminal in Jakarta, on October 31, 2018. Getty Images

Despite these commitments, the families of the victims argue that the arrangement, which they call a “sweetheart deal,” does not hold Boeing adequately accountable for its role in what some have called the “deadliest corporate crime in U.S. history.” They are urging the court to reject the plea and impose harsher penalties on the company and its executives.

“The only thing that will effectuate meaningful change within the company is a public trial. We are currently drafting our objection to the plea and will file it within the next week,” said Applebaum, the attorney.

Applebaum emphasized the legal team’s commitment to persuading Judge O’Connor to dismiss the proposed settlement.

“We look forward to explaining to Judge O’Connor why he should reject this rotten deal and set the case down for trial,” she said.

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Newsweek is committed to challenging conventional wisdom and finding connections in the search for common ground.

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