B2|Monday,October21,2019 ** THEWALL STREETJOURNAL.
acolleague in November 2016,
suggest that Mr.Forkner be-
lieved he unintentionally misled
regulator sabout certain as-
pectsofaflight-control system.
Apparentlyreferring to how
engineershad altered the sys-
tem, later implicated in both
MAXcrashes,tow ork in more
typicalflight conditions than
it wasoriginally designedfor,
Mr.Forkner said: “SoIbasi-
cally liedto the regulators
(unknowingly).”
Months aftersending that
message, Mr.Forkner portrayed
it differently.InaJanuary2017
email to an FAAofficial, he ar-
gued that the system known as
MCAS should betakenout of
manualsbecause it activates
“way outside the normal oper-
ating envelope,”and therefore
cockpit crewswould practically
neverexperienceit. Theemail
waslater turned overto Mr.
DeFazio’s committeeand re-
viewedbyt he Journal.
On Sunday, Boeingreleased
astate ment saying “weunder-
stan dand regret theconcern
caused by therelease”of Mr.
Forkner’s messages onFriday,
especially the difficulties that
has posedforthe FAA. The
companyalso said Boeing offi-
cial scontinuedto investigate
the circumstances behind the
messages “and ar ecommitted
to identifying all theavailable
facts”andsharing them with
appropriatefederal authorities.
Mr.Forkner’s attorney,David
Gerger, didn’trespondto are-
questforcomment over the
weekend about the January
2017email. On Friday, Mr.
Gergersaid the instant mes-
sages showedhis clientwasn’t
lying butwas insteadreferring
to amalfunctioning simulator.
—RachelLouiseEnsign
andSuzanneVranica
contributedtothisarticle.DeFazio,was atacit acknowl-
edgment that production pres-
sures have threatened Boeing’s
safety culture.
Thereshuffling,which the
boardrecommended afterits
ownreview,will centralizecon-
trol of engineering and safety
matters,g iving morepowerto
the company’sChicago-based
CEOand chief engineer.While
the aim isto re ducethe influ-
enceofb usinessconcerns such
as costsand production sched-
ules in engineering decisions,
the reviewdidn’t uncover signs
that undue pressureorother
lapsescompromised safety of
the MAXoro ther aircraftBoe-
ing produces,accordingto Ed-
mund Giambastiani Jr.,are-
tired U.S. Navy admiral who sits
on thecompany’sboardand
oversawthe review. Adm. Gi-
ambastianicalled it an“oppor-
tunityto improvethe system.”
The2016 survey nonetheless
showedthat 29% of the more
than 500employees who an-
swereditbylateNovember of
that year were “concerned
aboutconsequences ifIreport
potential undue pressure.”
Themateria llaying out the
surveyresultsmentioned that
“conflictcanoccur”when em-
ployees “are askedto develop
andthen approve”the same
technical proposal.
The presentation of there-
sults, whichwasapparently
preparedforall project admin-
istrators and authorizedFAA
representatives acrossBoeing
commercial-aircraftprograms,
also said that more than 80%
of respondentstot he survey
expressedconfidencethat pro-
cedureswere in placetoad-
dres sconcerns aboutexcess ive
pressure. Th edocument also
noted that theFAAseparately
had intervieweddozens of au-
thorizedrepresentatives, andINDEXTOBUSINESSES
Theseindexescitenotablereferencestomostparentcompaniesandbusinesspeople
intoday’sedition.Articlesonregionalpageinsertsaren’tcitedintheseindexes.
A
ACH Network..............B5
Acis Capital
Management.............B6
AIA Group...................B6
Amazon.com...............B9
APCAutomotive
Technologies.............B5
AT&T............................B2
Audax PrivateEquity.B5
BBarrick Gold................B5
Boeing....................B1,B9
BridgeTechnical
Talent........................B5
C
CaliforniaResources.B10
Chesapeake Energy..B10
Chubb...........................B2
DDoorDash...................B10
E - GEnCap Investments....B1
EP Energy..................B10
General Motors...A3,B10
Grimaldi Group............B3
GrubHub....................B10
Guggenheim
Securities..................B5
H
Hangzhou HIKVision
DigitalTechnology....B4
HarvestPartners........B5
Highland Capital
Management.............B6
HSBC Holdings............B1
K
Kirkland & Ellis...........B5
L
Lyft ClA....................B10
M
Microsoft.....................B9
Moody's.......................A1
MTR.............................A6
MyPayrollHR...............B5
N - P
NationalPayment.......B5
Newell Brands............A1
Peloton Interactive...B10PHLX OilService
Index.......................B10
PioneerBancorp..........B5
PJT Partners...............B5
Procter & Gamble.......B9
R
Raisa Energy...............B1
S
Selective Insurance
Group.........................B2
Sony.............................B2
Southwestern Payroll
Service......................B5
SPDR S&P Oil & Gas
Exploration &
Production ETF.......B10
S&P Global..................A1
T
TravelersCos..............B2
U
UberTechnologies....B10
W
Walt Disney................B2
WhitingPetroleum...B10
Wynn Resorts.............B3INDEXTOPEOPLE
BUSINESS &FINANCE
found that the “processfor re-
porting undue pressure[was]
well understood.”
Boeing declinedto comment
on whether Mr.Muilenburgand
the boardwereconsidering
personnel changes.
“Boeing’sleadershipteam is
committedtoo ur enduringval-
ues of safety,quality and integ-
rity as they implement the
board’srecommendations and
additional actionsto strengthen
and elevatesafety,”aBoeing
spokesman said, adding they
areworkingto safely return the
737MAX to service.
TheHouse committeehas
been delving intodocumentsit
has collected from Boeing andthe government and whether
the plane maker had made
misleading statementsto the
FAAbefor eitapproved the
modelfor commercial service
in March 2017, according to
people familiar with the probe.
TheBoeing spokesman said
the companyisf ully cooperat-
ing with allexternal inquiries
and reviews.
Disclosures by Mr.DeFazio’s
committeeonFridayofBoe-
ing’ sinternal messages be-
tween the senior Boeing pilot
andhis colleague have been
ramping up criticism of Boeing
on Capitol Hill.
Themessages between Mark
Forkner,then chieftechnical pi-
lot forthe MAXtasked with
winningFAAapprovalforthe
jet’smanuals and training,andThereshufflingwill
givemorepowertoits
ChicagobasedCEO
andchiefengineer.tend or eliminatethe statuteof
limitationsforchild sex-abuse
claims against alleged abusers
or affiliated institutions,ac-
cording to advocacygroup
Child USA.
NewYork’sChild Victims
Act,which wassigned intolaw
earlier thisyear,openedaone-
year windowonAug.14f or
victimstosue their abusers
andaffiliated institutionsre-
gard lessofwhen the alleged
abus eoccurred.
Hund reds of lawsuitshave
been filed in the stateinr ecent
weeks against churches and
other organizations.
TheDiocese of Rochester
filed forbankruptcy Sept. 12,
citing 46 newlawsuitsthat
were filed against the diocese
sinc ethe windowopened. In
itsbankruptcy filing,the dio-
cese said it might have insur-
ancecoveragefor some of theContinuedfrompageB1
Muilenburgabout the com-
pany’scultureand what he sees
as alack of accountabilityfor
two MAXcrashes thattogether
claimed 346 lives.
Boeing’s directors, expected
to meet onSundayinS an Anto-
nio,recently stripped Mr.
Muilenburgofh is dualrole as
chairman.Boardmembersin-
tended the movetos erveasa
signal that theywere holding
managementto account as the
MAXcrisis dragson, people fa-
miliar with the mattersaid.
“That’ snot exactly major ac-
countability,and it probably
goes deeper intothe or ganiza-
tion,”said Mr.DeFazio in an in-
terview, adding that hewas
also dissatisfied with the
board’ sovers ight, which he de-
scribed as “pretty lame.”
“Evenify ou grant that the
boardthought that the original
crashwaspilot error and bad
main tenance,”he added,“cer-
tainly they should have stepped
it way up af terthe second
crash, andIhaven’t seen that.”
Thecompanydidn’t respondto
arequestforcomment about
Mr.DeFazio’s criticism.
TheHouse hearing,and an-
other one the SenateCommerce
Committeeisexpectedto hold,
come weeks af terapair of offi-
cial reports, from U.S. air-crash
investigatorsand agroup of in-
ternationalaviationregulator s,
faulting Boeingforhow it de-
signed,tested andcertified a
MAXflight-control system,
called MCAS,that authorities
have said ledto the crashes in
Indonesia and Ethiopia.
No employees at Boeing
have been firedorremoved
from their positions because of
their role in the MAXcrisis,
people familiar with the matter
said. While Dave Calhoun, a
topexecutiveatt he Ne wYork
private-equityfirm Blackstone
Group Inc.,took over the chair-
manship from Mr.Muilenburg,
Mr.Muilenburgretained his
CEO position and is still a
boarddirector,and Mr .Calhoun
has said the boardhas full con-
fidenceinhim as CEO.Other
seniorexecutives at Boeingre-
main in place. Ke vin McAllister
is chief of thecompany’sair-
plane division, and Greg Hyslop
remains chief engineer.
Theboard’ srecent moveto
restructurehow the company
handles engineering,safety and
certification,accordingto Mr.
ContinuedfrompageB1
ingweekend and became the
highest-grossing movie glob-
ally of all time,every one of
Disn ey’s 2019 feature film re-
leases have grossed morethan
$45 million in theU.S. and
Canada openingweekendex-
cept for “Mistress of Evil.”
“Joker,”from AT&T Inc.’s
Warner Bros.,reta ined itsmo-
mentum in its thirdweekend,
grossing $29.2 million. The
Batman spinoffhas so far
made $247.2 million domesti-
cally.The film, which has
made$737.5 million globally,
is Warner Bros.’ highest-gross-
ing title so far thisyear.
In thirdplace, “Zombieland:
Double Tap,” from Sony
Corp.’s SonyPictures Enter-
tainment, made an estimated
$26.7million in theU.S. and
Canada. In 2009,“Zombie-
land”grossed$24.7 million
domestically.
The weekendwas the first
time in 21weeks Hollywood
had three separatefilms gross
morethan $25 million domes-
tically.mates.
Overall, the studio’s core
Walt DisneyPictures label—
which doesn’t include Marvel,
Pixar orStarWarsmovies—
has hadarobustyear,with re-
boots of “The Lion King”and
“Aladdin”grossing $543 mil-
lion and $355.6 millionrespec-
tively.
Ledby“Avengers: End-
game,”which made $357.1 mil-
lion domestically in its open-Disney’s head of distribu-
tion, CathleenTaff,said “Mis-
tres sofEvil”didn’t open as
strongly as the studio had
hoped, but said shewasen-
couraged by internationalre-
ceipts andexpects the movie
to perform well overseas in
the coming weeks.
“MistressofEvil” made
$117million overseas,bringing
itsworld-widetota lto$ 153
million, according to esti-Walt Disney Co.’spoorest
showing all year wasgood
enoughto scor ethe topspot
at th ebox offic ethis weekend.
“Maleficent: Mistressof
Evil”made onlyalittle more
than half the openingtota l of
its predecessor, also starring
AngelinaJolie as the antago-
nist from the Sleeping Beauty
fairytale,released in the sum-
mer of 2014.
“MistressofEvil”grossed
$36 million in theU.S. and
Canada, according to prelimi-
narystudio estimates.The
first“Maleficent”made $69.4
million during itsopening
weekend.
Both “Maleficent”films are
told from the perspectiveof
the title character. In thePG-
rated sequel, Ms.Jolie’s dour,
sharp-witted Maleficent joins
forces withaband of misfits
in an effortto stop an evil
queen, played by Michelle
Pfeiffer ,who has designs on
ridding the land of fairies.A
Amell, Thomas............B5
BBarra, Mary...............B10
Barth,Kevin................R8
Bloom, Nick.................B1
Bristow, Mark.............B5
CChesler,Robert...........B1
DDaugherty,Ed.............B5
Daugherty,Patrick......B6
Disterhaft, Shelly.......B5
Dondero, Jim...............B6
Dwek,Esty..................B9
FForkner, Mark..............B2
GGrimaldi, Emanuele....B3
HHamilton, George.......B5
Hankin, Marc...............B6
Heller, Dave................R8
J
K
Kharasch, Ira...............B6
Knutzen, Erik..............B1
L
Lalor, Bill.....................R4
Lunn, Peter.................R9
M
Magufuli, John............B5
Mandell, Bruce............R8
Mann, Michael............B5
McAllister, Kevin........B2
McGowan, Féidhlim....R9
Muilenburg, Dennis....B2
O
Okada, Mark................B6
P
Parker, Michael...........B9
Patel, Rakhee..............B6
Picciotto, Phil de........R8Poley, Scott.................R8
Q
Quinn, Noel.................B1
R
Rhoades, David...........B5
Rodriguez,Luis...........B5
S
Sellers, Justin.............R8
Spak, Joseph.............B10
Suryadevara, Dhivya.B10
T
Terry, Josh..................B6
Thornton, John...........B5
Timmons, Shane.........R9
W
Wright, James............B5
Wynn, Steve...............B3
Y
Yates, Bill....................R8
Z
Zhu,Weiqi...................B9BYR.T.WATSON
‘Maleficent’Disappointsat No.1
Angelina Joliereturnedto the leadrole for the sequel, the only Disney film of 2019 notto gross $45 million in its firstweekend.WALTDISNEY/EVERETTCOLLECTIONEstimatedBox-OfficeFigures,ThroughSunday
SALES,INMILLIONS
FILM DISTRIBUTOR WEEKEND* CUMULATIVE %CHANGE
1.Maleficent:
MistressofEvilDisney $36 $36 --2.Joker WarnerBros. $29.2 $247.2 -48
3.Zombieland:
DoubleTapSony $26.7 $26.7 --4.TheAddams
FamilyUnitedArtists
Releasing$16.1 $56.8 -47
5.GeminiMan Paramount $8.5 $36.5 -59
*Friday,SaturdayandSundaySource:ComscoreThe boardrecently movedtorestructurehow the companyhandles engineering, safetyand certification.TEDS.WARREN/ASSOCIATEDPRESSBoeing
Managers
Scrutinized
claims.The diocese declinedto
comment.
Insu rers set asidereserves
to payclaims based on what
they expect to payinf uture
yearsord ecades.For manylia-
bility-insurancepolicies soldto
churches or other institutions
in past decades,insurersmight
have estimated theywouldn’t
incu rfuturesex-abuse claims
on those policies oncethe stat-
utes of limitation passed. Now,
they needto re calculatetheir
reserves based on the new
laws.
Chubb Ltd., Travelers Cos.
and SelectiveInsurance
Group Inc.all ha ve said this
year that they have increased
thei rreserves because of po-
tential exposuretosex-abuse
claims.
Manyinstitutions don’t hold
on to decades-old policydocu-
ments, and itcanbed ifficultto
track down details.Sometimes
“insurancearchaeologists”are
hiredto hunt down old poli-
cies.
Insu rers and policyholders
could also spar over whether a
policyholder knewabout al-
leged abuse and ignored it. Lia-
bility insurancepolicies typi-
cally cove rnegligent actsbut
notintentional ones.Insurers
Brace for
Settlements
The Marketplace
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