Washington, DC, Monday, July 08, 2024- Boeing has agreed to plead guilty to a criminal fraud conspiracy charge and pay a $243.6 million fine to resolve the U.S. Justice Department’s investigation into the two deadly 737 Max crashes of 2018 and 2019.
This plea deal, requiring a judge’s approval, would brand Boeing a convicted felon for its role in the crashes that claimed 346 lives in Indonesia and Ethiopia.
However, the settlement has drawn sharp criticism from victims’ families who argue for harsher consequences, including a trial for Boeing.
The Justice Department’s pursuit of a guilty plea deepens Boeing’s ongoing crisis, further complicated by a separate in-flight incident in January that exposed lingering safety and quality control issues.
The guilty plea could threaten Boeing’s ability to secure lucrative government contracts, although the company might seek waivers to mitigate this impact.
The Justice Department determined in May that Boeing had violated a 2021 settlement related to the crashes, opening the door for criminal prosecution.
While a plea spares Boeing a potentially damaging trial, it eases the path forward for leadership changes and approval of the planned Spirit AeroSystems acquisition.
As part of the deal, Boeing has agreed to invest at least $455 million in safety and compliance programs over three years.
The company’s board is obligated to meet with families who lost loved ones in the crashes.
However, lawyers representing victims’ families plan to challenge the deal, citing previous statements from the presiding judge regarding the potential for this incident being considered “the deadliest corporate crime in U.S. history.” One lawyer representing some families called the settlement a “slap on the wrist,” underscoring the ongoing debate surrounding the deal’s adequacy.
Boeing’s 2021 agreement can bee read here.
