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 | AP News Image
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 | AP News Image
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
(VOR News) – Foxconn, the largest contract electronics maker in the world, achieved its highest-ever revenue for the third quarter, surpassing industry predictions in the process.
This was made feasible by the robust demand for servers that utilize artificial intelligence, which enabled Foxconn to attain levels of accomplishment that had never been seen before.
The income of Apple’s leading iPhone assembler increased by 20.2% compared to the previous year, reaching 1.85 trillion Taiwanese dollars. This is a significant increase overall. When converted to dollars in the United States, this amount is comparable to $57.3 billion.
“We exceeded our original growth expectations,” Foxconn said.
“The company’s original expectations were for significant growth.” The statement was issued by the company aforementioned.
In addition to that, there was an LSEG SmartEstimate that was 1.79 trillion Taiwan dollars ahead of it. Estimates that are generated by analysts who are more accurate on a consistent basis are given greater weight by this SmartEstimate. A further demonstration of the fact that it was ahead of the curve was provided by this phenomenon.
Foxconn, whose customers include the artificial intelligence chip manufacturer NVIDIA NVDA.O, has stated that the cloud and networking products department of the company has achieved strong revenue growth as a direct result of the robust demand for AI servers. This growth has been attributed to the fact that the demand for AI servers has improved significantly.
The market for smart consumer devices, which includes iPhones, experienced a rapid rise from one quarter to the next as a result of the debut of new products; however, its performance from one year to the next was not different from what it had been in the previous year.
This was the case despite the fast growth that occurred from one quarter to the next. In the past, Taiwan’s technology businesses have historically begun their rivalry to supply big vendors like Apple with smartphones, tablets, and other electronic gadgets in order to get ready for the holiday season in Western markets. This was done in order to prepare for the holiday season in Western societies.
The beginning of this competition normally takes place during the third quarter of the second half.
The total sales for the month of September reached T$733 billion, which is the second-highest figure ever recorded for the month and marks a year-on-year increase of 10.9%.
Foxconn sold T$733 billion in September.
When asked about its forecasts for the current quarter, Foxconn reacted by saying, “We anticipate our operation to gradually gain momentum as we enter the peak season in the second half of the year.” This statement was made in response to a question regarding the company’s forecasts.
This assertion was followed by the statement that stated, “The fourth quarter is anticipated to be roughly in line with current market expectations,” yet the statement did not provide any additional rationale for this assertion.
In addition, it is important to take into consideration the fact that the firm does not offer any mathematical projections.
The stock of Foxconn has increased by 86% so far this year, which is far higher than the overall rise of 24% that the Taiwan market has experienced.
Additionally, the stock of Foxconn has increased by a significant amount. In contrast to the benchmark index, which had experienced a decrease of 0.4%, they finished the day with a gain of 3.7%, which was a significant difference. This was prior to the disclosure of the revenue numbers, which was anticipated to take place within the brief span of time that followed.
On November 14th, it is anticipated that the corporation will make the comprehensive report of results for the third quarter available to the general public. The firm has taken the decision to hold its annual Tech Day on October 8 and 9, which is an event that is commonly used for the release of new products or partnerships. Tech Day is an event that is frequently used.
SOURCE: CNBC
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Mark Zuckerberg Joins Exclusive $200 Billion Club, Is Second-Richest Person In World
Mark Zuckerberg’s wallet is becoming fatter.
The Meta CEO is now the world’s second richest person, surpassing Jeff Bezos and Bernard Arnault. With a personal fortune of $206 billion, according to Bloomberg’s Billionaire Index, he now trails only Elon Musk.
According to Bloomberg’s Billionaire Index, Mark‘s fortune will have increased by a staggering $78.1 billion by 2024. He enters an exclusive $200 billion club with only two other members.
Mark Zuckerberg Joins Exclusive $200 Billion Club, Is Second-Richest Person In World
This includes Musk ($256 billion), CEO of Tesla and X, and Bezos ($205 billion), Amazon’s founder. Arnault, the CEO of luxury firm LVMH, just left the club with a wealth of $193 billion.
Zuckerberg, 40, who founded Facebook in 2004, derives much of his money from Meta Platforms stock. Meta (META) stock is up more than 72% in 2024. Meta shares rose 2.26% on Friday, closing at a record high of $595.94.
Meta runs popular social networking networks like Facebook, Instagram, and Threads, as well as the instant messaging service WhatsApp.
On September 25, at the Meta Connect 2024 event, Zuckerberg stated that Meta AI is on course to become the world’s most popular assistant.
“We’re almost at 500 million monthly (active users), and we haven’t even launched in some of the bigger countries yet,” Zuckerberg remarked, referring to EU countries.
Zuckerberg isn’t the only tech magnate who has seen his fortunes skyrocket this year. Jensen Huang, CEO of Nvidia, and Larry Ellison, co-founder of Oracle, are expected to have net worths of $63.5 billion and $55.9 billion, respectively, in 2024.
This includes Musk ($256 billion), CEO of Tesla and X, and Bezos ($205 billion), Amazon’s founder. Arnault, the CEO of luxury firm LVMH, just left the club with a wealth of $193 billion.
Zuckerberg, 40, who founded Facebook in 2004, derives much of his money from Meta Platforms stock. Meta (META) stock is up more than 72% in 2024. Meta shares rose 2.26% on Friday, closing at a record high of $595.94.
Meta runs popular social networking networks like Facebook, Instagram, and Threads, as well as the instant messaging service WhatsApp.
Mark Zuckerberg Joins Exclusive $200 Billion Club, Is Second-Richest Person In World
On September 25, at the Meta Connect 2024 event, Zuckerberg stated that Meta AI is on course to become the world’s most popular assistant.
“We’re almost at 500 million monthly (active users), and we haven’t even launched in some of the bigger countries yet,” Zuckerberg remarked, referring to EU countries.
Zuckerberg isn’t the only tech magnate who has seen his fortunes skyrocket this year. Jensen Huang, CEO of Nvidia, and Larry Ellison, co-founder of Oracle, are expected to have net worths of $63.5 billion and $55.9 billion, respectively, in 2024.
SOURCE | CNN
Business
Following the Defects in Boeing Parts, Italian Prosecutors have charged Two Companies and Seven Individuals.
(VOR News) – Seven Boeing individuals and two sub-contractors were charged with committing crimes like fraud and breaking aviation safety laws on Saturday, following an investigation into allegedly defective components that were made by an Italian company for Boeing.
The inquiry, which took place on Saturday, was conducted by Italian prosecutors. It was in reaction to suspicions that the components were made by an Italian company that the investigation was carried out.
The Boeing inquiry was conducted as part of a larger investigation.
Following the conclusion of the investigation, allegations were made in response to the discoveries that were discovered.
In the latter half of the year 2021, the prosecutors initiated their investigation when Boeing discovered that certain components for its 787 Dreamliner aircraft had been manufactured in a manner that was illegal. This marked the commencement of a preliminary investigation.
These components had been supplied by a company that worked for the Italian aerospace corporation Leonardo when they were required. Leonardo is an Italian aerospace corporation.
According to the findings of the study, two Boeing Italian subcontractors employed kinds of titanium and aluminum that were less expensive than the standards that were necessary in order to manufacture particular components. This was mentioned in a statement that was issued by the authorities who were in charge of the inquiry at the time.
The fact that they were able to cut down on the amount of money they spent on the costs of their raw materials led to significant cost reductions, which in turn led to significant savings.
On the other hand, the statement did not identify any of the seven people who were involved in the incident, nor did it identify any of the subcontractors who were involved.
“This resulted in the realization of airplane parts with significantly lower static and stress resistance than Boeing characteristics, which had repercussions on aviation safety,” the prosecutors in the city of Brindisi, which is located in the southern region of Italy, observed.
Brindisi is located in the Veneto region of Italy.
The locale of Brindisi can be found in the southern region of Italy. The city of Brindisi may be found in the region of Italy that is often referred to as the southern section of the country.
According to the statement in question, aerospace specialists who worked in conjunction with prosecutors came to the conclusion that there were as many as 4,829 components made of titanium that did not comply with the standards, and there were 1,158 components made of aluminum that did not comply.
They also said Boeing and Leonardo were victims.
Certainly, this was a noteworthy discovery. According to what they said, they had been victims of the actions that were taking place.
“The expert work and investigations came to the conclusion that some structural components that did not comply with the regulations could, in the long run, cause harm to the safety of the aircraft,” according to the conclusions that were reached by specialists.
“This would require the United States company to initiate an extraordinary maintenance campaign for the aircraft involved.”
Seven persons and two sub-contractors will be given the option to present any new evidence that they may have in their defense before the time comes for the prosecutors to decide whether or not to seek a court to conduct a trial. This opportunity will be provided before the time comes for the officials to make their decision.
This opportunity will be made available to them for the purpose of allowing them to defend themselves. Before the time comes for the prosecutors to make their judgment, they will be given the opportunity to choose from this alternative.
Leonardo, on the other hand, said that he had no intention of making any remarks about their conversation. A commitment has been made by Boeing to provide a response to the matter at the appropriate time at the appropriate time.
SOURCE: USN
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