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Boeing faces legal challenge over 737 Max crashes

A federal judge has ordered Boeing to face arraignment on a felony charge related to the crashes of two 737 MAX jetliners, which killed 346 people in 2018 and 2019. U.S. District Court Judge Reed O'Connor ordered Boeing to appear on Jan. 26 for arraignment on the felony charge after issuing a narrow ruling in favor of the victims' families, who have accused the Department of Justice (DOJ) of cutting a secret deal with Boeing and leaving them out of the negotiations.

A settlement between Boeing and the DOJ was reached in 2020, which included a $500 million fund to compensate victims' families and a $243.6 million fine. However, lawyers for the families have argued that the deal is inadequate and should be re-negotiated.

In December 2020, Congress passed a law requiring the Federal Aviation Administration (FAA) to ensure that all aircraft it certifies have updated crew-alerting systems that conform to the latest safety standards. Boeing ran into delays with FAA approval of the changes, and so lawmakers included a waiver for Boeing from the 2020 law in the December 2022 omnibus spending bill, while also requiring its 737 MAX 7 jets and existing fleet of MAX 8 and MAX 9 aircraft to be retrofitted with two fixes.

Boeing's new 737 MAX 10 is being designed and flight tested with the updated system, and the MAX 7 and MAX 10 will need to be certified by the FAA before they can enter service with airlines. Boeing is expected to enter service in the first few months of 2023, and the MAX 10 late this year.

Boeing has been ordered to face arraignment on a felony charge related to the crashes of two 737 MAX jetliners that killed 346 people in 2018 and 2019. The Department of Justice (DOJ) and Boeing reached a settlement in 2020, which included a $500 million fund to compensate victims' families and a $243.6 million fine. However, lawyers for the families have argued that the deal is inadequate and should be re-negotiated.

Congress passed a law in 2020 that required the Federal Aviation Administration (FAA) to ensure that all aircraft it certifies have updated crew-alerting systems that conform to the latest safety standards. Boeing has been working to comply with the requirements and is developing and flight testing its 737 MAX 10 with the updated system. The MAX 7 and MAX 10 will need to be certified by the FAA before they can enter service with airlines, with Boeing projected to enter service in the first few months of 2023, and the MAX 10 late this year. A hearing is expected in January at which victims' families will be able to speak, however, it is yet to be determined whether Boeing's immunity from prosecution should be revoked.

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