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Boeing Faces Demands for $24 Billion Fine and Criminal Prosecution Over 737 Max Crashes

Families of the victims of two fatal Boeing 737 Max crashes are seeking justice and accountability for what they consider to be “the deadliest corporate crime in U.S. history.” Attorney Paul Cassell, representing the families, has called for a fine of over $24 billion and aggressive criminal prosecution against Boeing. In a letter to the Department of Justice (DOJ), Cassell outlined the families’ demands and urged the DOJ not to offer any concessions during plea negotiations.

Cassell argued that the magnitude of Boeing’s crime justifies a maximum fine of over $24 billion, with a portion of the funds suspended if redirected towards quality control and safety measures. He also proposed that Boeing’s board of directors meet with the families of the victims to acknowledge the gravity of the situation. Additionally, Cassell recommended criminal prosecutions against Boeing executives who were in charge at the time of the crashes.

The families’ demands stem from the DOJ’s finding that Boeing had breached a 2021 agreement that shielded the company from criminal prosecution over the fatal crashes. The investigations into the crashes revealed that the Maneuvering Characteristics Augmentation System (MCAS) played a central role. The MCAS automatically adjusted the flight controls to prevent stalling, but a faulty sensor triggered repeated nose-down inputs, leading to unrecoverable dives.

While an Ethiopian government report blamed Boeing for the crashes, citing a single faulty sensor, both the U.S. National Transportation Safety Board and France’s Bureau of Enquiry and Analysis for Civil Aviation Safety identified pilot error as a critical contributing factor. They also disputed the Ethiopian finding, suggesting that a bird strike on the sensor vane was more likely. These differing perspectives have complicated the determination of responsibility for the crashes.

In January 2021, Boeing reached a $2.5 billion settlement with the DOJ to avoid prosecution on a fraud charge related to misleading federal regulators who approved the 737 Max. The settlement came after Boeing admitted to deceiving the Federal Aviation Administration about the MCAS operation. The DOJ recently stated that Boeing violated the terms of the settlement by failing to implement promised changes to detect and prevent violations of federal anti-fraud laws.

Boeing maintains that it has fulfilled the requirements of the settlement and intends to engage with the DOJ transparently. However, the DOJ is considering whether to file charges against the company and will inform the court of its decision by July 7.

These developments come in the wake of a Senate hearing where Boeing CEO David Calhoun expressed his apologies to the families affected by the crashes. The families’ attorney’s letter calling for a multibillion-dollar fine and criminal prosecution adds further pressure on Boeing as it seeks to address the consequences of the 737 Max crashes.

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