Washington — Boeing has broken a settlement that let the corporation avoid criminal prosecution after two tragic disasters involving its 737 Max aircraft more than five years ago, the Justice Department told a federal judge on Tuesday.

The Justice Department will now determine whether to press charges against Boeing. The department said the prosecutors would tell the court how they wanted to proceed by July 7.

New Boeing 737 Max jets crashed in Indonesia in 2018 and Ethiopia in 2019, killing 346 people. In January 2021, Boeing negotiated a $2.5 billion deal with the Justice Department to avoid prosecution for a single fraud charge: deceiving federal regulators who authorized the airliner. Boeing blamed the fraud on two lower-level employees.

Justice Department Says Boeing Violated Deal That Avoided Prosecution After 737 Max Crashes

In a letter filed Tuesday in federal court in Texas, Glenn Leon, head of the Justice Department criminal division’s fraud section, said Boeing breached the settlement’s provisions by failing to implement promised reforms to detect and prevent violations of federal anti-fraud statutes.

The determination means that Boeing might be prosecuted “for any federal criminal violation of which the United States has knowledge,” including the accusation of fraud that the corporation intended to avoid with the deal, the Justice Department said.

However, it is unclear whether the government will pursue Boeing.

“The government is determining how it will proceed in this matter,” the Justice Department stated in the court document. Boeing will have until June 13 to reply to the government’s allegations, and the department has stated that it will consider the company’s explanation “in determining whether to pursue prosecution.”

Boeing Co., headquartered in Arlington, Virginia, disputed the Justice Department’s finding.

“We believe we have honored the terms of that agreement, and we look forward to the opportunity to respond to the Department on this issue,” a Boeing representative stated. “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.”

Boeing has come under fresh criticism following an Alaska Airlines flight in January, when a door plug blew out of a 737 Max, leaving a gaping hole in the plane’s side. The corporation is being investigated for several reasons, including the blowout and production quality. The FBI informed passengers on the airplane that they could be victims of a crime.

Justice Department Says Boeing Violated Deal That Avoided Prosecution After 737 Max Crashes

Prosecutors plan to speak with the families of passengers killed in the two Max disasters on May 31. Family members were outraged and dissatisfied after a similar gathering last month.

Paul Cassell, a lawyer who represents families of passengers in the second tragedy, said the Justice Department’s decision that Boeing violated the settlement terms is “a positive first step, and for the families, a long time coming.”

“But we need to see further action from DOJ to hold Boeing accountable, and plan to use our meeting on May 31 to explain in more details what we believe would be a satisfactory remedy to Boeing’s ongoing criminal conduct,” Cassell stated.

Investigations into the incidents pointed to a flight-control system that Boeing installed on the Max without informing pilots or airlines. Boeing minimized the system’s importance and did not revamp it until after the second tragedy.

Justice Department Says Boeing Violated Deal That Avoided Prosecution After 737 Max Crashes

Following covert discussions, the government agreed not to prosecute Boeing for defrauding the United States by misleading authorities about its flight system. The settlement includes a $243.6 million fine, a $500 million victim compensation fund, and roughly $1.8 billion in payments to airlines whose Max jets had been grounded for nearly two years.

Since the Indonesian and Ethiopian crashes, Boeing has faced civil lawsuits, congressional probes, and significant financial losses.

SOURCE – (AP)

HONG KONG — YouTube has disabled access to videos of a protest song in Hong Kong only days after a court approved an injunction prohibiting the song in the city.

In 2019, “Glory to Hong Kong” was an anti-government protest anthem. YouTube stated that it would comply with a removal order by blocking access to over 32 YouTube videos of the song that were designated “prohibited publications” under the injunction.

Attempts to access the YouTube videos from Hong Kong on Wednesday proved unsuccessful. A warning stated, “This content is not available on this country domain due to a court order.”

YouTube Blocks Hong Kong Protest Anthem After Court Injunction Bans Song In The City

The court approved the government’s application to ban the song, recognizing that it could be “weaponized” and used to foment secession.

“We are disappointed by the court’s decision, but we are complying with its removal order by blocking access to the listed videos for viewers in Hong Kong,” YouTube, controlled by Alphabet Inc., said in an emailed statement.

“We’ll continue to consider our options for an appeal, to promote access to information,” the business said, adding that it shared human rights organizations’ concerns about the ban’s stifling effect on free expression online.

According to YouTube, links to the 32 YouTube videos will also not appear in Google Search for Hong Kong consumers.

George Chen, co-chair of digital practice at Asia Group, a Washington-based business and policy firm, believes it is worth monitoring how forcefully Hong Kong authorities order internet platforms to delete music.

Chen, the former head of public policy for Greater China at Meta, stated that if the government started giving platforms hundreds of links to remove daily, investor trust in Hong Kong would surely suffer

YouTube Blocks Hong Kong Protest Anthem After Court Injunction Bans Song In The City

“That will hurt Hong Kong’s reputation as a leading financial center because we know how important a free flow of data and information means to a financial center,” he stated. “So the government should be very careful and be aware of some unintended consequences that may impact its economic recovery and investors’ confidence.”

Internet and social media services, such as YouTube, often have protocols to address government removal demands.

Demonstrators frequently sang “Glory to Hong Kong” during large anti-government rallies in 2019. The song was then incorrectly played as the city’s anthem during international athletic events, rather than China’s “March of the Volunteers,” causing confusion among city officials.

According to local media, authorities previously arrested several individuals who sang the song in public for other infractions, such as playing a musical instrument in public without a permit.

YouTube Blocks Hong Kong Protest Anthem After Court Injunction Bans Song In The City

Critics argue that barring the song’s broadcast or distribution further restricts free expression in the former British colony since Beijing initiated a crackdown following the 2019 demonstrations. They have also warned that the prohibition will disrupt the operations of major digital companies and harm the city’s appeal as a commercial hub.

SOURCE – (AP)

Red Lobster abruptly closed at least 50 of its restaurants across the United States, surprising customers and employees. Red Lobster is reportedly considering filing for bankruptcy.

The chain has hired a restructuring expert as its CEO, which could indicate an eventual bankruptcy.

TAGeX Brands, a restaurant liquidator, said that it would auction off goods from some of the Red Lobster restaurants that had closed.

“TAGeX Brands is proud to launch the largest restaurant liquidation EVER through its online auction marketplace,” Neal Sherman, CEO of TAGeX Brands, wrote in a LinkedIn post.

“The furniture, fixtures, and equipment from select Red Lobster locations must go ASAP!”

The mass closures are yet another evidence of Red Lobster’s woes, and it is the first time in the chain’s more than 50-year history that dozens of restaurants have closed at the same time.

Red Lobster was a casual dining pioneer, introducing reasonably priced seafood to middle-class consumers for the first time.

However, the business has decreased in recent years owing to a variety of causes, including corporate mismanagement, according to former executives and restaurant analysts.

Thai Union Group Takes $530 Million Loss

Thai Union Group, a Thai producer of seafood-based food products and a longtime Red Lobster supplier, acquired an unknown financial position in the business in 2020, becoming a prominent shareholder.

Under Thai Union’s leadership, Red Lobster went through four CEOs and implemented an all-you-can-eat shrimp bargain last year, which slowed table service and reduced Thai Union’s earnings.

The offer has been running for more than 18 years at Red Lobster, but it has now become a permanent staple on the menu. “We need to be much more careful,” Thai Union CEO Thiraphong Chansiri stated in November about the shrimp contract.

Thai Union Group said this year that it was divesting from Red Lobster and would incur a $530 million loss on its investment. The chain, which has 27 restaurants in Canada and 649 in the United States, has not publicly commented on the closures.

In 2023, the company reportedly lost millions of dollars after its unlimited shrimp deal proved unexpectedly popular with clients.

The all-you-can-eat menu choice was originally only available for a limited period, but when the company made it permanent, consumers took advantage and consumed more shrimp than the restaurants could afford.

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