December 9, 2022

US Opens $500 Million Fund for Relatives of Boeing 737 Max Victims | Voice of America

A $500 million U.S. fund to compensate relatives of 346 people killed in two fatal Boeing 737 Max crashes has opened, the claim administrators told Reuters on Tuesday. 

The fund, which opened on Monday, is part of a settlement with the U.S. Justice Department. Boeing Co. in January agreed to pay $500 million to compensate the heirs, relatives and beneficiaries of the passengers who died in Lion Air Flight 610 and Ethiopian Airlines Flight 302 in 2018 and 2019. 

Each eligible family will receive nearly $1.45 million, and money will be paid on a rolling basis as claim forms are submitted and completed, said administrators Ken Feinberg and Camille Biros in a joint statement. Families have until October 15 to complete claim forms. 

The Justice Department and Boeing declined to comment. 

The fund is part of a $2.5 billion Justice Department settlement reached in January with Boeing after prosecutors charged the company with fraud over the certification of the 737 Max following a Lion Air crash on Oct. 29, 2018, and an Ethiopian Airlines disaster on March 10, 2019. 

Dozens of grounded Boeing 737 MAX aircraft are seen parked at Grant County International Airport in Moses Lake, Washington, Nov. 17, 2020.
FILE – Dozens of grounded Boeing 737 Max aircraft are seen parked at Grant County International Airport in Moses Lake, Washington, Nov. 17, 2020.

The settlement allowed Boeing to avoid criminal prosecution but did not impact civil litigation by victims’ relatives that continues. 

In July 2019, Boeing named Feinberg and Biros to oversee the distribution of a separate $50 million to the families of those killed in the crashes, and the new fund’s distribution follows a similar formula. 

While Boeing has mostly settled Lion Air lawsuits, it still faces numerous lawsuits in Chicago federal court by families of the Ethiopian crash asking why the Max continued flying after the first disaster. 

The DOJ settlement includes a fine of $243.6 million and compensation to airlines of $1.77 billion over fraud conspiracy charges related to the plane’s flawed design. 

The Justice Department said in January, “Boeing’s employees chose the path of profit over candor by concealing material information from the FAA concerning the operation of its 737 Max airplane and engaging in an effort to cover up their deception.” 

Some lawmakers say the government did not go far enough, while Boeing says it has taken numerous steps to overhaul its safety culture. 

Congress ordered a major overhaul of how the FAA certifies new airplanes in December and directed an independent review of Boeing’s safety culture. 

The 737 Max was grounded for 20 months after the two fatal crashes. The FAA lifted the order after Boeing made software upgrades and training changes. 

Last month, Boeing agreed to pay a $17 million FAA fine after it installed equipment on more than 700 Boeing 737 Max and NG aircraft that contained sensors that were not approved. “The FAA will hold Boeing and the aviation industry accountable to keep our skies safe,” FAA Administrator Steve Dickson said. 
 

in U.S.
Related Posts

White House Urges US Companies to Protect Against Ransomware | Voice of America

June 3, 2021

June 3, 2021

The White House on Thursday urged American businesses to take new precautions to combat disruptive ransomware attacks that have increasingly...

US Surgeons Help Russian Boy Born Deaf, Without Ears | Voice of America

June 9, 2021

June 9, 2021

Four-year-old Kirill Zherebtsov  was born deaf and without ears. He was scheduled for a special surgery in California but a day...

After Horrific Domestic Violence Tragedy, a New Life

June 2, 2021

June 2, 2021

In 2008, a family murder-suicide horrified Detroit. Two decades later, one of the surviving daughters is telling her story of...

As Taliban Dramatically Expands Territorial Gains, US Suggests Slower Afghan Pullout | Voice of America

June 22, 2021

June 22, 2021

ISLAMABAD – Fierce fighting continues to rage across Afghanistan, where officials reported Tuesday security forces had reversed some of the...

Infrastructure Bill Would Upgrade Aging US Waterways System | Voice of America

June 6, 2021

June 6, 2021

UTICA, ILLINOIS – It’s a routine sight on the Illinois River: towboats slowly pushing barges carrying everything from salt and...

Seattle Man Arrested Trying to Join Islamic State Terror Group | Voice of America

June 2, 2021

June 2, 2021

SEATTLE, WASHINGTON – A 20-year-old Seattle man is facing a terrorism-related charge after he was arrested while trying to board...

US Seeks to Extradite Turkish Businessman Over Fraud Charges | Voice of America

June 22, 2021

June 22, 2021

WASHINGTON – The United States will seek to extradite a Turkish businessman from Austria so he can appear before a U.S. judge in Utah, where...

Bruce Springsteen Plans Broadway Return of His One-Man Show | Voice of America

June 7, 2021

June 7, 2021

NEW YORK – The Boss just can’t quit Broadway. Bruce Springsteen will return to Broadway this summer for a limited...

Biden to GOP: ‘Don’t Get in the Way’ of Infrastructure Plan | Voice of America

May 28, 2021

May 28, 2021

WASHINGTON – President Joe Biden on Thursday warned naysayers in Congress not to “get in the way” of his big...

New Robot ‘Mayflower’ Ship Begins Voyage Recreating Original Route | Voice of America

June 15, 2021

June 15, 2021

A fully autonomous ship named for the Mayflower, the ship that sailed to what is now the eastern U.S. state...

More Americans Apprehended for Moving Drugs across US-Mexico Border  | Voice of America

June 1, 2021

June 1, 2021

PHOENIX, AZ – An increasing number of American citizens have been apprehended as they have tried to smuggle illegal drugs...

FDA Approves Obesity Drug That Helped People Cut Weight 15% | Voice of America

June 4, 2021

June 4, 2021

Regulators on Friday said a new version of a popular diabetes medicine could be sold as a weight-loss drug in...

Blinken to Arrive in Italy Sunday for Meetings With Top Leaders, Pope | Voice of America

June 26, 2021

June 26, 2021

U.S. Secretary of State Antony Blinken’s multination trip to Europe takes him to Italy Sunday for several days of meetings...

Federal Judge Blocks Biden’s Pause on New Oil, Gas Leases | Voice of America

June 16, 2021

June 16, 2021

NEW ORLEANS, LA. – The Biden administration’s suspension of new oil and gas leases on federal land and water was...

Five Dead, More than 40 Injured After Vehicle Mows Down Wisconsin Parade

November 22, 2021

November 22, 2021

WAUKESHA, WIS. —  A speeding SUV plowed through a Christmas parade in Waukesha, Wisconsin, on Sunday, killing five people and...