Business
Boeing Accepts A Plea Deal To Avoid A Criminal Trial Over 737 Max Crashes, Justice Department Says
Boeing will plead guilty to a criminal fraud charge resulting from two 737 Max plane disasters that killed 346 people, the Justice Department announced late Sunday, after the government found the firm broke an agreement that had shielded it from prosecution for more than three years.
Last week, federal prosecutors gave Boeing the option of pleading guilty and paying a fine as part of its penalty or going to trial on the felony criminal allegation of conspiracy to defraud the United States.
Prosecutors accused the American aerospace firm of misleading regulators who authorized the jet and its pilot training standards.
Boeing Accepts A Plea Deal To Avoid A Criminal Trial Over 737 Max Crashes, Justice Department Says
The plea agreement, which must still be approved by a federal judge before it takes effect, requires Boeing to pay an additional $243.6 million punishment. That was the same amount it paid under the 2021 settlement, which the Justice Department claimed the business violated. An impartial monitor would be appointed to oversee Boeing’s safety and quality practices for three years. The agreement also compels Boeing to invest at least $455 million in its compliance and safety initiatives.
The plea deal mainly addresses Boeing’s violation prior to the crashes in Indonesia and Ethiopia, which killed all 346 passengers and crew members onboard two new Max jets. A Justice Department official stated that it does not provide Boeing with immunity for prior events, such as a panel that flew off a Max aircraft during an Alaska Airlines flight over Oregon in January.
The agreement also does not cover any current or past Boeing executives, only the company. Boeing stated in a statement that it had struck an agreement with the Justice Department but declined to disclose further.
According to a filing made Sunday night, the Justice Department expects to present the written plea deal to a U.S. District Court in Texas by July 19. Lawyers for some of the relatives of those killed in the two crashes have stated that they will seek the judge to reject the arrangement.
“This sweetheart deal ignores the fact that 346 people died as a result of Boeing’s conspiracy.” “The deadly consequences of Boeing’s crime are being hidden through crafty lawyering between Boeing and the DOJ,” said Paul Cassell, a lawyer for some of the families.
Federal prosecutors accused Boeing of conspiring to deceive the government by deceiving authorities about a flight-control system involved in the crashes, which occurred less than five months apart.
As part of the January 2021 deal, the Justice Department agreed not to prosecute Boeing for the charge if the firm met specific conditions for three years. Last month, prosecutors accused Boeing of violating the conditions of that deal.
U.S. District Judge Reed O’Connor, who has handled the case since its inception, has denounced what he calls “Boeing’s egregious criminal conduct.” O’Connor could accept the plea and the punishment provided by prosecutors, or he could reject the accord, which would likely result in additional negotiations between the Justice Department and Boeing.
The case dates back to the crashes in Indonesia and Ethiopia. The Lion Air pilots in the first crash were unaware of flight-control software that might automatically lower the plane’s nose. Ethiopian Airlines pilots were aware of the situation, but were unable to manage the plane when the software activated due to information from a defective sensor.
In 2021, the Justice Department sued Boeing with tricking FAA regulators about the software, which did not present on older 737s, and how much training pilots would require to fly the plane safely. The department agreed not to prosecute Boeing at the time in exchange for the corporation paying a $2.5 billion settlement, including the $243.6 million fine, and taking three years to comply with anti-fraud regulations.
Boeing, which accused two low-level employees for misleading authorities, attempted to put the crashes behind it. when grounding Max aircraft for 20 months, regulators allowed them to fly again when the manufacturer decreased the strength of their flying software. Max jets completed thousands of safe flights, and airline orders increased, reaching approximately 750 in 2021, 700 more in 2022, and over 1,000 in 2023.
This changed in January, when an unused emergency escape panel burst off an Alaska Airlines Max during a flight over Oregon.
Pilots safely landed the 737 Max, and no one was seriously wounded, but the incident prompted more scrutiny of the corporation. The Justice Department launched a fresh investigation, the FBI informed passengers on the Alaska flight that they could be victims of a crime, and the FAA said that it was increasing oversight of Boeing.
According to some legal experts, a criminal conviction might undermine Boeing’s eligibility for federal contracts. The plea announced on Sunday does not address that issue, leaving it up to each federal agency to decide whether to exclude Boeing.
The Air Force claimed a “compelling national interest” in allowing Boeing to compete for contracts after the corporation paid a $615 million fine in 2006 to settle criminal and civil allegations, including using stolen information from a competitor to win a space-launch contract.
The corporation, headquartered in Arlington, Virginia, has 170,000 workers and dozens of airline customers throughout the world. Southwest, United, American, Alaska, Ryanair, and flydubai are among the most loyal 737 Max customers.
However, 37% of its revenue last year came from US federal contracts. The majority of it was defense work, including military sales that Washington organized for other countries.
Boeing also manufactures a capsule for NASA. Two astronauts will stay aboard the International Space Station for longer than expected while Boeing and NASA engineers work to resolve issues with the capsule’s propulsion system.
Even some Boeing detractors are concerned about harming a critical defense contractor.
“We want Boeing to succeed,” said Richard Blumenthal, a Connecticut Democrat, at a Senate hearing last month on the company’s allegedly dysfunctional safety culture. “Boeing needs to succeed for the sake of the jobs it provides, for the sake of local economies it supports, for the sake of the American traveling public, for the sake of our military.”
Boeing Accepts A Plea Deal To Avoid A Criminal Trial Over 737 Max Crashes, Justice Department Says
Relatives of the Max crash victims have called for a criminal prosecution to uncover what Boeing employees knew about tricking the FAA. They also want the Justice Department to prosecute key Boeing personnel, rather than merely the business.
“Boeing has paid fines numerous times, and it doesn’t appear to make any difference,” said Ike Riffel of Redding, California, whose sons Melvin and Bennett died in the Ethiopian Airlines tragedy. “When people start going to prison, that’s when you are going to see a change.”
At a recent Senate session, Boeing CEO David Calhoun defended the company’s safety record before turning and apologizing to relatives of Max accident victims seated in the rows behind him “for the grief that we have caused.”
Hours before the hearing, the Senate investigations subcommittee issued a 204-page report containing new charges from a whistleblower who expressed concern that defective parts could be used in 737s. The whistleblower is the latest in a long line of current and former Boeing employees who have voiced safety concerns about the firm and claimed retaliation as a result.
SOURCE – AP
Business
Boeing’s Lawyers Come To Court To Face Relatives Of The Passengers Who Died In Boeing Max Crashes
FORT WORTH, Texas — Relatives of some of the 346 people killed in two crashes involving Boeing 737 Max planes are in court Friday, asking a federal judge to overturn a plea agreement reached between the aircraft manufacturer and federal prosecutors.
The family members want the government to bring Boeing to trial, where the firm might face harsher penalties.
In July, Boeing agreed to plead guilty to one felony count of conspiracy to commit fraud in connection with the Max’s regulatory clearance. Boeing, a major federal contractor, will pay a fine and serve a probationary period under the terms of the deal with the Justice Department.
Passengers’ relatives call it a sweetheart bargain that ignores the lives lost.
“The families who lost loved ones in the 737 Max crashes deserve far more than the inadequate, superficial deal struck between Boeing and the Department of Justice,” said Erin Applebaum, a lawyer who represents some of the families. “They deserve a transparent legal process that truly holds Boeing accountable for its actions.”
Boeing’s Lawyers Come To Court To Face Relatives Of The Passengers Who Died In Boeing Max Crashes
Lawyers for the government and the company filed court briefs defending the settlement, while attorneys for the passengers’ families stated their disagreement with the agreement. During Friday’s hearing in Fort Worth, Texas, US District Judge Reed O’Connor will have the opportunity to interview both parties.
If the court accepts the guilty plea, he must also adopt the sentence that Boeing and prosecutors agreed on; he cannot impose different conditions. It is unknown when O’Connor will rule on the subject.
Boeing has been accused of deceiving authorities by approving minimal, computer-based training for Boeing 737 pilots before they could fly the Max. Boeing tried to avoid regulators from demanding flight simulator training, which would have increased the cost for airlines to operate the plane.
The Justice Department contends that conspiracy to deceive the government is the most serious charge it can establish. Prosecutors believe they cannot show that Boeing’s conduct caused the crashes in Indonesia in 2018 and Ethiopia in 2019.
The agreement requires Boeing, based in Arlington, Virginia, to pay a minimum punishment of $243.6 million, invest $455 million in compliance and safety measures, and serve a three-year probation period.
The case is just one of several concerns with which the firm is currently dealing.
Boeing’s Lawyers Come To Court To Face Relatives Of The Passengers Who Died In Boeing Max Crashes
This week, negotiations fell down between striking manufacturing workers who construct some of the company’s best-selling planes. The company retracted its offer, and S&P Global Ratings added it to its credit watch list, citing elevated financial risk due to worker unrest.
On Thursday, the company filed a complaint with the International Association of Machinists and Aerospace Workers, alleging unfair labor practices. Boeing complained to the National Labor Relations Board that the union’s public narrative was misleading and made reaching a resolution difficult.
SOURCE | AP
Business
Uber And Lyft Stock Prices Surge After Telsa’s “Toothless” Robotaxi Revelation.
(VOR News) – On Friday, the electric vehicle manufacturer Tesla made the Uber news that had been anticipated for a long time about the robotaxi.
As a consequence, the stocks of ride-hailing app businesses Uber (UBER) and Lyft (LYFT) simultaneously increased, while the stock of Tesla experienced a decline.
The highly anticipated prototype of the robot axi that Tesla (TSLA-8.23%) has been working on was officially presented to the public by Elon Musk, the Chief Executive Officer of Tesla (TSLA-8.23%), during the evening of Thursday. The preliminary version of the product is referred to as “Cybercab.”
A lot of investors, on the other hand, were left with the idea that the event did not excite them or leave them feeling impressed. In addition to the fact that made a great deal of lofty Musk remarks, analysts pointed out that there was a lack of concrete information presented. In addition to this, they brought out the fact that there was an absence of specific details.
In the early morning hours of Friday, shares of Uber and Lyft both increased by 10 percent, while shares of Tesla fell by more than eight percent.
This Uber happened as a result of investors’ responses.
It is anticipated that the Cybercab will be the first vehicle that Tesla makes that is capable of performing driving responsibilities that are entirely automated.
There is a great deal of anticipation among fans about this aspect. There is still a need for a driver in Tesla automobiles, despite the fact that the company has software that gives help for autonomous driving. Despite the fact that the company develops software for autonomous driving, this is also the case.
Musk’s only comment regarding the Cybercab was that production will “probably” begin in 2026 or “before 2027.” This was the only thing he could say by himself. He was only able to supply this one indication out of all the others.
It was not possible for Musk to provide a definitive answer to the production date of the automobile. It is now anticipated that the price of the automobile will be lower than thirty thousand dollars. This is the current estimate.
When asked about his proposal for a network of robot vehicles, the CEO had earlier framed his notion of a robot-axi network as a combination of Uber and Airbnb.
If you are interested in learning more about his plan, go here. Through the process of connecting their automobiles to the infrastructure of this network, owners would have the option to make cash even while they were sleeping.
He went so far as to extend an invitation to everyone, particularly drivers for Uber and Lyft, to investigate the prospect of purchasing a significant number of Cybercab drivers together on Thursday.
He did this even though he wasn’t a member of Uber or any other companies.
Despite this, there were investors who did not have a positive attitude toward the possibility. In addition to stating that it was the best-case scenario for Uber, the Cybercab was described as “toothless” by someone who was educated about the subject.
John Colantuoni, an analyst at Jefferies, made this assertion in a client note that was sent out on Friday. The note was circulated to clients. He concluded by writing, “We consider the event to be a best-case outcome for Uber, given that Tesla did not provide verifiable evidence of progress toward (Level 3 autonomous driving) or quantify the number of robots planned.”
Given that investors are now allowed to concentrate on fundamentals, we think that Uber will respond favorably to this development. This is what we anticipate will happen.
SOURCE: QZ
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AT&T Is Offering a $10,000 Reward For Information Regarding Copper Wire Theft.
Business
AT&T Is Offering a $10,000 Reward For Information Regarding Copper Wire Theft.
(VOR News) – AT&T, a multinational telecommunications firm with its headquarters in Dallas, is offering a reward of $10,000 for information that leads to the suspect’s location.
For information that leads to an arrest or conviction for the theft of copper cable or the attempted sale of stolen copper cable in the Dallas-Fort Worth area and the adjacent areas, the reward is for “specific and detailed” information that leads to an arrest or conviction.
Because it is not only time-consuming but also expensive to AT&T replace copper cable that has been stolen, the company claims that the issue has become a major concern for the operations of the company.
This is due to the fact that theft of copper cable leads to replacement of the cable. It was established that there was a connection between the theft of copper and an AT&T service outage that occurred in South Dallas earlier this year. The information was gathered through an investigation.
“Theft and vandalism of critical communications infrastructure are serious matters that affect public safety and the community at large,” said Michael Peterson, Assistant Vice President of AT&T Texas, in a release.
“These incidents have a significant impact on the community as a whole for AT&T.”
“These incidents have a significant impact on the community as a whole.” “These incidents have a significant impact on the community as a whole.”
To conduct investigations into any potential occurrences that may take place, we are collaborating closely with law enforcement to carry out these investigations. This is being done in order to ensure that we will continue to provide services that are of the best possible satisfaction to our customers.
In order to notify the community about an incident that occurred during the month of August, the Garland Police Department made use of social media in order to disseminate information about the occurrence. There were two people involved in the crime, and they were captured on film stealing copper wire while they were claiming to be utility personnel. The theft was caught on film.
You should under no circumstances let your guard down! Robbers that steal copper are active both during the day and at night, as stated in a post that was made on X by the Garland Police Department regarding copper theft.
As mentioned in the news release, AT&T is currently working with local authorities in order to provide an explanation of the situation, as well as to investigate and try to find a solution to the problem. A threat to important infrastructure that is necessary for the delivery of basic services is posed by copper theft, as stated by Tennell Atkins.
AT&T is serving as the mayor of Dallas.
Additionally, AT&T communities are left susceptible in the event of natural disasters as a result of copper theft, which is another downside of copper theft.
This significant problem, which is a worry for the entire population, has an effect on each and every individual. Taking this into consideration, it is of the utmost importance that we collaborate and raise awareness in order to put an end to those who are responsible,” Atkins stated in the press statement concerning the situation.
Members of the general public are being asked to report any vehicles or persons that are not marked and are cutting or removing wires. AT&T is urging that this information be reported. Quick reporting of any and all incidents is required.
In the event that you phone the local police enforcement or AT&T Global Security & Investigations at the number (800) 807-4205, you have the choice of remaining anonymous while providing information regarding the incident.
This is the case even if you are providing information about the incident. Up until the first of November in the year 2025, it is possible to provide the award for consideration.
A survey that was published by WIRED earlier this year indicates that theft of metal is on the rise, with an increasing number of occurrences being reported. It was established in the essay that there is a connection between criminal activities and the increase in the price of metals all over the world.
The price of copper has increased by around thirty percent over the course of the past five years in comparison to what it was five years ago.
Over the course of the past two years, it has been estimated that around 184 miles of electrical wiring from streetlights has been missing across the city of Las Vegas and the metropolitan areas that surround it. This is a significant amount of missing wiring.
SOURCE: TDMN
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