Boeing seeks to withdraw guilty pleas over 2 deadly 737 MAX crashes: Sources
Kevin Dietsch/Getty Images
(WASHINGTON) — Boeing is seeking to withdraw its guilty plea agreement with the Department of Justice in the criminal cases surrounding two deadly 737 MAX crashes, sources familiar with the matter told ABC News.
The agreement blamed the aerospace giant for misleading the Federal Aviation Administration before the two crashes in October 2018 and March 2019 that killed 346 people in total.
Boeing is seeking more lenient treatment from President Donald Trump’s administration and the DOJ is considering modifying aspects of the plea agreement, the sources said.
The Wall Street Journal was first to report the news.
The initial plea agreement was rejected by U.S. District Judge Reed O’Connor in December 2024, who cited the government’s diversity, equity and inclusion policies as a factor in the selection of an independent compliance monitor for Boeing.
According to the most recent court filing, the two parties will continue to meet and negotiate and must notify the court by April 11 on how they plan to proceed forward.
Boeing declined to comment to ABC News and referred the question to the DOJ.
“Boeing got one of the most lenient deferred prosecution agreements in American history,” said Paul Cassell, a lawyer representing some families of the MAX crash victims. “The idea that after they breached that agreement, they get another opportunity to avoid acknowledging what it’s done seems, to me, to be wishful thinking on the part of Boeing.”
The first crash on Oct. 29, 2018, in Jakarta, Indonesia, killed all 189 passengers and crew. The second crash, on March 10, 2019, happened in Addis Ababa, Ethiopia, when a Boeing aircraft crashed minutes after takeoff and killed 157 people onboard.
Both crashes preceded the Alaska Airlines incident in Jan. 2024, when a door plug fell out of the fuselage of a Boeing 737 Max 9, a newer model, after departure.
(DALLAS) — A shift is on the horizon at Southwest Airlines. The carrier known for its customer-friendly policies and affordable airfare announced changes to its baggage and fare structure in an effort to cater to a broader range of travelers.
While the low-cost airline has long stood out for offering two free checked bags for all passengers, starting May 28, some customers will see charges for checked baggage.
The most notable change from the Dallas-based carrier that was announced Tuesday impacts those not holding certain status levels with Southwest’s Rapid Rewards program.
Southwest Airlines will continue to offer two free checked bags to Rapid Rewards A-List Preferred Members as well as its Business Select travelers.
A-List Members and other select customers will still receive one free checked bag, the airline said. However, those without qualifying status will now face a charge for their first and second checked bags, subject to weight and size limitations.
“We have tremendous opportunity to meet current and future customer needs, attract new customer segments we don’t compete for today, and return to the levels of profitability that both we and our shareholders expect,” President and CEO Bob Jordan said.
Why Southwest is changing baggage fees?
For passengers traveling on lower-priced fares, such as Wanna Get Away or Wanna Get Away Plus, the changes outlined reflect a move toward more targeted options for a range of travelers from budget conscious to frequent flyers, which the airline hinted at in December.
Southwest Rapid Rewards program points changes, assigned seats and more
In addition to the new baggage fees, Southwest’s Rapid Rewards program will also have some changes for earning points.
Customers who fly Business Select will earn more points, while those on lower-tier options — like Wanna Get Away fares — will earn fewer.
The airline is also introducing a new Basic fare category for the lowest-priced tickets starting May 28 ahead of rolling out assigned seating and extra legroom options.
“We’re evolving our business to create more choice for our current and future customers,” Jordan said.
Southwest is working to expand its reach with flights now available to book through Expedia, and an industry-standard partnership with Icelandair.
Flight credits issued for tickets purchased on or after May 28 will expire one year or earlier from the date of ticketing, depending on the fare type purchased.
(NEW YORK) — Stocks futures traded slightly higher early Wednesday, following another volatile day for the market amid the continued rollout of President Donald Trump’s tariffs on goods from top U.S. trading partners.
Dow futures were higher by 189 points or 0.46%. Both the Nasdaq and S&P 500 also appeared ready to open narrowly higher on Wednesday.
Traders are expected to be looking to Wednesday’s inflation report for clues on the health of the economy amid Trump’s escalting trade war. Expectations are that inflation will be up 2.9% compared to a year ago. A worse-than-expected report could add to negative stock sentiment.
Trump’s 25% tariffs on all imported steel and aluminum products came into effect overnight. The European Commission said EU member states would retaliate with duties on U.S. goods, sending European markets mostly higher.
Some economists say that while the tariffs could boost the local steel industry in the United States, they could also lead to higher prices for industries that purchase steel. Those higher prices may eventually reach consumers.
The U.S. relies heavily on imported aluminum and those costs are expected go up as well.
This is a developing story. Please check back for updates.
Deb Cohn-Orbach/UCG/Universal Images Group via Getty Images
(NEW YORK) — With more high-rise buildings than anywhere else in the U.S., New York City has long been a place where millions of people hope to achieve the American dream through careers in the construction industry.
While scores of construction workers are spending hours each day building the city’s newest apartment buildings, office towers and restaurants from the ground up, these properties have also become the locations of the city’s latest fraud scheme, according to some representatives of the construction and insurance industries.
“It isn’t a victimless crime,” Don Orlando of Tradesman Program Managers, which represents property owners and construction contractors, told ABC News. “These are small businesses that are getting victimized.”
Orlando alleges that hundreds of construction site incidents involving reported injuries were actually staged as part of a widespread conspiracy — and he said surveillance cameras are capturing some of these alleged fraudulent falls.
He pointed to a video that he says shows a man who “didn’t fall” and “just sat down” while an ambulance was on its way. The man filed a lawsuit claiming head and limb injuries, according to Orlando.
“That $200 or $300 investment in that camera saved that employer millions of dollars,” Orlando said.
Others said these claims are being blown out of proportion.
“If there was this rampant fraud going on, these cases would be dismissed by a judge or a jury,” New York personal injury attorney Nicholas Warywoda told ABC News. “That’s just not happening.”
‘The cost of doing work skyrockets’
Steve Katz has worked in the construction industry in the New York metropolitan area for more than 50 years, but said the last few years have been unlike anything he has ever experienced.
According to Katz, his concerns over fraud started eight years ago when one of his employees claimed to have fallen from a fire escape. After doctors said the employee was fine and could return to work, the man never came back, according to Katz, adding that his insurance company settled for $3.6 million.
“That’s when I went crazy,” Katz said. “I found out that I wasn’t the only one. My competitors told me they were all getting hit with these fake falls.”
Two years later, Katz said another construction worker sued him, alleging a fall on one of the properties where Katz’s crews were working. However, Katz said the employee’s colleagues told him that the employee told them that he was planning the fall in advance and was willing to teach them how to fake falls as well.
“Since then, I’ve had a total of eight of these phony lawsuits,” Katz said, adding that the extensive costs associated with fraudulent claims are being passed along to customers.
“We just raise our rates. The insurance companies raise their rates, and the cost of doing work skyrockets.”
Orlando explained that fraudulent construction accident cases can have financial implications for insurance customers throughout the U.S., even outside the nation’s largest city.
“If this was true, then why are the insurance companies not showing the proof that it’s actually lawsuits that are raising premiums and insurance costs?” Warywoda, whose firm frequently represents construction workers injured on construction sites in New York, said.
“One could say if the owners of the construction sites would just provide the appropriate safety measures that they’re required to, there wouldn’t be as many lawsuits,” he added.
One address, multiple lawsuits
Allegations of widespread fraud have caused increased scrutiny on lawsuits being filed by people claiming to be construction workers who were hurt on job sites.
In New York City’s outer boroughs, miles from the high-rise towers of Midtown Manhattan, reporting by ABC station WABC-TV found some claims coming from multiple people living at the same address.
One apartment building in the Bronx was home to 30 plaintiffs, while a two-story building nearby was listed as the home of 21 plaintiffs, according to WABC-TV’s report. In Queens, at least half a dozen people living in a six-unit apartment building said in court documents that they were injured on the job at construction sites.
“If you think about it, the law of averages tells you it’s really unlikely that there’s going to be this large number of people living at the same address, who are all in the same business, work for the same employer, have the same injury, have the same medical treatment and are going through the exact same things,” Michelle Rafield, the executive editor for Coalition Against Insurance Fraud, told ABC News.
Orlando’s company, Tradesman, claimed undocumented migrants are being recruited to participate in the scheme.
“They’re told, ‘Listen, we can teach you how to make millions. This is all you have to do. You have to fake a fall on a construction site,'” Katz said.
Katz and Orlando claim that some doctors and lawyers are in on the scheme, and that after the construction accidents are reported, the migrants undergo unnecessary surgeries and then become plaintiffs in slip-and-fall lawsuits
“I would call the plaintiffs in this case victims, because they are the ones being taken advantage of,” Orlando said.
Tradesman has now filed lawsuits of its own, taking over 100 defendants, including law firms and doctors, to federal court on accusations of racketeering.
“It’s morally wrong,” Orlando said. “Take out the fraud element. You’re taking advantage of someone who’s deprived as it is, and America is supposed to be the land of opportunities.”
Attorneys for dozens of the defendants say the allegations have no merit and that they intend to seek dismissals of the claims against them.
“The insurance industry and the industry lobby is very wealthy and very strong. They’re doing everything they can to tarnish and to change the civil justice system, which is only going to make it less safe for construction workers,” Warywoda, who isn’t among those accused in Trademan’s lawsuits, said. “It’s about putting profits over people.”
