Boeing pleads guilty, faces $243.6M fine for 737 MAX crashes
8:14 AM EDT, July 8, 2024
According to Reuters, Boeing has agreed to plead guilty to fraud charges and pay a fine of $243.6 million to conclude the U.S. Department of Justice investigation into two fatal 737 MAX crashes.
The settlement, which requires approval by a judge, would mean the aircraft manufacturer is recognized as a convicted criminal in connection with the crashes in Indonesia and Ethiopia, which occurred within five months in 2018 and 2019, killing 346 people, Reuters reports.
The agency adds that the settlement has met with criticism from the victims' families, who wanted Boeing to face trial and bear more severe financial consequences.
As part of the agreement, the aircraft manufacturer agreed to spend at least $455 million over the next three years on enhancing safety and compliance programs. The agency reports that Boeing's board will also have to meet with the relatives of those who died in the crashes.
Boeing's problems
After the 737 MAX crashes in 2018 and 2019, Boeing settled with the Department of Justice in 2021, avoiding prosecution on charges of misleading federal regulators.
Boeing accused two relatively low-level employees of fraud. However, as the head of the Department of Justice's fraud division wrote in a court filing, Boeing did not implement the promised changes to prevent violations of federal anti-fraud regulations, thus breaching the settlement terms.
According to the Department of Justice, this provision means that the aircraft manufacturer can be prosecuted "for any violation of federal law known to the United States," including the fraud charge the company hoped to avoid through the settlement.
