Boeing agrees to plea deal with DOJ

The airplane manufacturer has admitted to misleading the FAA during its investigation into the 737 MAX.

Boeing has reached a plea deal with the Department of Justice (DOJ), where the airplane manufacturer will plead guilty to conspiracy to defraud the United States and pay a fine of $243.6 million.

As part of the agreement, Boeing will serve a three-year term of organizational probation, invest $455 million in compliance, quality, and safety programs and have its board of directors meet with the families of victims of the two 737 MAX crashes.

The big picture: The plea agreement is subject to approval by US District Judge Reed O’Connor in the Northern District of Texas, who has the authority to either approve or reject the deal.

  • In addition to the plea deal, an independent compliance monitor will be appointed, and the agreement does not grant Boeing immunity for any other conduct that may be the subject of ongoing or future government investigations of the company.
  • Boeing was accused of misleading the Federal Aviation Administration (FAA) about the 737 MAX before the agency certified the plane for flight, particularly regarding the MCAS software system, which played a role in the two crashes in 2018 and 2019 in Indonesia and Ethiopia.
  • The crashes occurred due to a faulty sensor reading, which triggered the MCAS to push the nose of the plane down, leading to the grounding of MAX jets worldwide until Boeing redesigned the MCAS and implemented other safety measures.

What they’re saying: “Boeing and the Justice Department have filed a detailed plea agreement in federal court, which is subject to court approval,” Boeing said in a statement. “We will continue to work transparently with our regulators as we take significant actions across Boeing to further strengthen our safety, quality and compliance programs.”

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