Boeing, the aerospace giant, has agreed to plead guilty to a criminal fraud conspiracy charge related to the fatal 737 Max crashes in 2018 and 2019. The fine and safety program investments are part of the plea deal.
Boeing, the American aerospace company has agreed to plead guilty to a felony charge of conspiring to defraud the federal government. This charge comes from the two fatal crashes involving its 737 Max aircraft in 2018 and 2019, causing the loss of 346 passengers and crew members.
The U.S.Department of Justice found that Boeing breached an agreement to improve its practices after the crashes and as part of the plea agreement, Boeing will have to pay a fine of $487.2 million which is the maximum allowed by law.
In addition to paying the fine, Boeing has committed to investing at least $455 million over the next three years in order to improve its compliance and safety programs, which ultimately aim to prevent any crashes in the future.
Independent compliance monitoring will also be continued to make sure that safety measures are implemented properly. Lastly, Boeing will be placed on probation for three years under the supervision of the Federal District Court for the Northern District of Texas.
The company’s board of directors will need to meet with crash victims’ families in order to acknowledge the impact of their actions.
The company has not faced a federal felony conviction in decades. The Department of Justice considers the conspiracy charge to defraud the federal government “the most serious readily provable offense.”
The agreement will be submitted shortly, and the victims' families will have the opportunity to speak at the hearing. The Department of Justice stresses the importance of holding companies accountable for safety agreements under the Biden administration.
