The Justice Department has reached a deal with Boeing to avoid criminal prosecution regarding the 737 Max crashes that killed 346 people, wherein Boeing will pay and invest over $1.1 billion, including $445 million for the crash victims’ families.
This agreement aims to dismiss the fraud charge against Boeing to preserve its federal contractor status.
The big picture: The Justice Department defended the resolution as the most just outcome with practical benefits, emphasizing Boeing’s financial accountability, compensation for families, and impact on air traveler safety. Boeing chose not to comment on the matter, accepting the terms of the deal.
- Families of the crash victims have sought public trials, prosecution of former Boeing officials, and harsher financial penalties for the company. Some families feel Boeing should be held accountable to the flying public beyond fines and financial restitution.
Driving the news: Boeing was accused of misleading the FAA about the 737 Max, particularly the MCAS software that contributed to the crashes. The company failed to disclose crucial information about the software, resulting in the planes crashing due to erroneous sensor readings.
- In 2021, Boeing faced charges for deceiving regulators about the software and training requirements for pilots. Despite a settlement to avoid prosecution, Boeing violated the terms by not implementing changes to prevent further breaches of anti-fraud laws.
- A Judge initially rejected Boeing’s guilty plea agreement due to concerns about diversity, inclusion, and equity affecting the choice of a monitor to oversee compliance. Per the new deal, Boeing must appoint an independent compliance consultant to enhance safety and quality procedures and report back to the government.
