Boeing Agrees to Plea Deal and Fine
Boeing has agreed to plead guilty to a criminal fraud conspiracy charge and pay a fine of $243.6 million to resolve a U.S. Justice Department investigation into two 737 MAX fatal crashes. This agreement, which was disclosed in a court filing on Sunday, is pending judicial approval.
Potential Consequences for Boeing
A guilty plea could jeopardize Boeing’s ability to secure lucrative contracts with government entities such as the U.S. Defense Department and NASA, although the company could potentially seek waivers. The Justice Department found that Boeing violated a 2021 settlement related to the fatal crashes, opening the company to criminal prosecution.
Settlement Details
Despite the plea, Boeing avoids a contentious trial that could have further exposed its decision-making processes leading up to the crashes. This plea deal may facilitate Boeing’s efforts to move forward under a new CEO later this year and seek approval for its planned acquisition of Spirit AeroSystems.
Terms of the Agreement
As part of the agreement, Boeing has committed to spending at least $455 million over the next three years to enhance safety and compliance programs. The company’s board is also required to meet with the relatives of the victims. An independent monitor will be appointed to oversee Boeing’s compliance and will publicly file annual progress reports during a three-year probation period.
Opposition from Victims’ Families
Lawyers representing some of the victims’ families plan to urge Judge Reed O’Connor, who is overseeing the case, to reject the plea deal. They refer to O’Connor’s statement from a February 2023 ruling, describing Boeing’s crime as potentially the deadliest corporate crime in U.S. history. Last month, the families pressed the Justice Department to seek a fine as high as $25 billion.
