Business

Boeing Accepts A Plea Deal To Avoid A Criminal Trial Over 737 Max Crashes, Justice Department Says

Published

4 months ago

2024-07-08

Boeing | AP News Image

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

Kiara Grace

Kiara Grace is a staff writer at VORNews, a reputable online publication. Her writing focuses on technology trends, particularly in the realm of consumer electronics and software. With a keen eye for detail and a knack for breaking down complex topics. Kiara delivers insightful analyses that resonate with tech enthusiasts and casual readers alike. Her articles strike a balance between in-depth coverage and accessibility, making them a go-to resource for anyone seeking to stay informed about the latest innovations shaping our digital world.

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Business

Subsidies for Electric Vehicles Cut as Consumer Interest Fades

Published

5 days ago

2024-11-04

Geoff Thomas

Electric vehicles (EVs) are still considerably more expensive than traditional alternatives.

Pressure is building on Canada’s electric vehicle manufacturers, and several are rethinking their stance on E.V.s in favor of plug-in hybrids. Automobile manufacturers are now bracing themselves for an even more challenging era in the Canadian market for electric vehicles (E.V.s).

President Kristian Aquilina of General Motors Canada claims that support and expectations are misaligned because the Canadian government is reducing subsidies for electric vehicles while trying to phase out gas-powered cars.

Manufacturers find pushing for an all-electric future in Canada increasingly difficult due to fewer consumer financial incentives and increasingly strict sales targets.

With subsidies totaling up to C$12,000 (about $8,500), Canadian consumers may save a tonne of money on electric automobiles. The federal government offers a rebate of up to $5,000 Canadian, and the provinces of Quebec and British Columbia provide further incentives of up to $7,000 and $4,000, respectively.

Ford lost about 2,000 US for every EV it sold in the first three months of the year.

Ford lost about $132,000 US for every E.V. it sold in the first three months of the year.

Ontario, which eliminated rebates in 2018, had the lowest market share for electric vehicles compared to Quebec and British Columbia, two regions that offered bigger incentives and thereby drove E.V. adoption in Canada.

Although this backing is dwindling, the province of Quebec has now declared that all subsidies will end in 2027. In June, the British Columbia government restricted incentives to a smaller subset of E.V. purchasers for “available funding” and higher-than-expected E.V. sales growth.

These reductions indicate a larger pattern: provincial governments reevaluate the sustainability of taxpayer-financed incentives for E.V.s as budget deficits widen.

With lofty goals to cut pollution from gas-powered cars and increase sales of electric vehicles, the Canadian government has reduced subsidies for these vehicles. Electric or plug-in hybrid vehicles will be mandatory for all new light-duty vehicle sales in Canada by 2035.

B.C. needs to step up with incentives for consumers to buy used EVs, some opposition critics say.

Some opposition critics say that B.C. needs to step up with incentives for consumers to buy used E.V.s.

To meet our intermediate goals, 20% of new sales must be electric vehicles (E.V.s) by 2026 and 60% by 2030. Car companies are already under a lot of pressure due to dwindling incentives and increasing demands, and the clock is ticking faster by the second.

In addition, these rules impose new forms of responsibility. Automakers that do not reach their provincial sales targets may be subject to financial fines imposed by provinces such as British Columbia.

Canadian manufacturers are already under financial pressure from federal compliance credit system standards, which they must meet or face deficits. This system gives them credit for electric vehicle sales and infrastructure improvements, but it’s not without its challenges.

“The timing is not necessarily lining up very well, in that the purchase incentive support comes off just as mandates and regulations start to bite,” GMC Canada President Kristian Aquilina told Bloomberg. “It must make a difference.

Therefore, we must consider that. Despite the cutbacks, Aquilina argued that the government’s investment in enhancing the charging infrastructure could benefit E.V. sales.

Tesla Sales Fall As More Electric Vehicles Crowd the Market

Tesla Sales Fall Again As More Automakers Crowd Electric Vehicle Market

Geoff Thomas

Geoffrey Thomas is a seasoned staff writer at VORNews, a reputable online publication. With his sharp writing skills and deep understanding of SEO, he consistently delivers high-quality, engaging content that resonates with readers. Thomas' articles are well-researched, informative, and written in a clear, concise style that keeps audiences hooked. His ability to craft compelling narratives while seamlessly incorporating relevant keywords has made him a valuable asset to the VORNews team.

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Business

Chewy Slides After Filing Shows 3rd-Biggest Shareholder, ‘Roaring Kitty,’ Sold His Stake

Published

1 week ago

2024-10-30

Kiara Grace

Washington — Chewy shares fell about 2% overnight Wednesday after a regulatory filing showed that Roaring Kitty, a meme stock trader, sold his interest in the online pet retailer.

According to a beneficial ownership document filed with the Securities and Exchange Commission on Tuesday, Roaring Kitty, whose legal name is Keith Gill, sold all his Chewy shares, totaling 6.6% of the company.

Chewy Slides After Filing Shows Third-Biggest Shareholder, ‘Roaring Kitty,’ Sold His Stake

Plantation, Florida-based Chewy dropped 1.9% after hours to $26.19 per share.

Gill, an investor at the core of the meme stock craze, bought more than 9 million shares of Chewy in July, making him the company’s third-largest stakeholder.

Gill built a name for himself in 2021 by rallying ordinary investors around GameStop. At the time, the video game shop was fighting to stay in business, and major Wall Street hedge funds and investors were betting against it or shorting the stock. But Gill and those who agreed with him altered GameStop’s direction by purchasing thousands of shares despite practically all acknowledged criteria indicating that the firm was in deep peril.

Chewy Slides After Filing Shows Third-Biggest Shareholder, ‘Roaring Kitty,’ Sold His Stake

That triggered what is known as a “short squeeze,” in which large investors who had bet on GameStop were obliged to buy its swiftly increasing stock to offset significant losses.

Gill has expressed confidence in GameStop Chairman and CEO Ryan Cohen’s ability to revamp the company following his success at Chewy. Cohen cofounded Chewy in 2011 and stepped down as CEO in 2018.

SOURCE | AP

Kiara Grace

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Business

Canada CBC News CEO Catherine Tait Recalled to Parliamentary Committee

Published

1 week ago

2024-10-30

Geoff Thomas

Catherine Tait won't rule out taking bonus once she leaves CBC/Radio-Canada

Canada CBC News reports that MPs have voted to recall CBC CEO Catherine Tait to a Commons committee for questioning, only a week after her last appearance, over the awarding of $18 million in bonuses to Canada CBC news executives.

The Conservatives, the Bloc Québécois, and the NDP joined forces to re-invite Ms. Tait, her successor Marie-Philippe Bouchard, and Heritage Minister Pascale St-Onge to appear before the Commons Heritage Committee.

Ms. Tait, who will relinquish her position as CEO and president of CBC/Radio Canada in January, addressed the committee last week. The House of Commons has passed a motion recalling her before the conclusion of her term, and she is now subject to an additional two hours of interrogation, which includes inquiries regarding bonuses.

MPs also resolved to summon Quebec broadcasting executive Marie-Philippe Bouchard, appointed as the new chief of CBC/Radio-Canada last week, to appear before she begins her new job following a House of Commons chamber debate.

Catherine Tait Exit Package

Catherine Tait rejected the Conservatives’ requests to deny an exit package, including bonuses, when she departed the position in January during last week’s committee hearing.

She also defended the award of $18.4 million in incentives to 1,194 staff members for the 2023-2024 fiscal year, which concluded in March, following the broadcaster’s achievement of performance indicators.

Kevin Waugh, a Conservative committee member who introduced the motion, stated that his party aimed to ensure Ms. Tait was “accountable to taxpayers” before her departure in January.

He informed The Globe and Mail that “Canadians are dissatisfied with the bonuses” and that Catherine Tait‘s exit package, which will not be disclosed, is a cause for concern.

“I am apprehensive that she has not received her bonuses in over two years, and that the Minister of Heritage or Privy Council will lavish her with bonuses when she departs in January,” he stated.

The Liberals opposed a portion of the motion that claimed that “the Liberal threat to cut funding” had resulted in the elimination of hundreds of jobs at CBC/Radio-Canada.

Defunding CBC News Canada

The Heritage Minister informed The Globe that the claim was “hypocritical,” as the Conservatives intended to completely defund CBC.

“The Conservatives’ actions today are a clear example of hypocrisy.” Ms. St-Onge stated that performance bonuses increased by 65% during the Harper Conservatives’ tenure, while CBC News Atlantic Canada experienced substantial budget cutbacks.

“As a government, we do not require any lessons from a party that has pledged to reduce the funding of CBC/Radio-Canada and the 8,000 jobs associated with it during its campaign.”

During the Tuesday debate, NDP MP Niki Ashton stated that her party endorses the “banning of executive bonuses” at CBC News Atlantic Canada but is opposed to “the Conservatives’ full frontal attack” on the broadcaster.

She stated, “We require a robust public broadcaster, but not one that distributes executive bonuses and eliminates positions.”

If the Conservatives establish the next government, they intend to deprive the CBC of public funding while maintaining French services.

Catherine Tait defended CBC and rebuffed MPs’ assaults during last week’s committee hearing. “It is evident that the members of this committee are making a concerted effort to discredit the organization and vilify me,” she stated.