Boeing has agreed to plead guilty to a criminal fraud charge related to the 737 Max jetliner crashes that killed 346 people in exchange for avoiding criminal prosecution by the Department of Justice. The aerospace giant will plead guilty to conspiracy to defraud the United States by lying to the Federal Aviation Administration about a flight-control system implicated in the crashes.
Under the deal, Boeing will invest at least $455 million to improve its compliance and safety programs and pay a $243.6 million fine. This is in addition to the $243.6 million fine the company paid in a 2021 settlement. Boeing will also be subject to probation for at least three years under the oversight of an independent compliance monitor.
The plea deal only covers the corporation and not any current or former Boeing officials. The court will determine how much restitution should be paid to the families of the deceased. However, attorneys for the families have filed a separate motion asking the judge to reject the deal, citing that it unfairly makes concessions to Boeing and fails to hold the company accountable for the deaths of 346 people.
Many have criticized the plea deal on social media, saying it fails to hold Boeing accountable for its actions.
In 2021, Boeing entered into a deferred prosecution agreement with the DOJ in exchange for agreeing to pay more than $2.5 billion. The breakdown includes a criminal penalty of $243.6 million, compensation of $1.77 billion to Boeing’s 737 MAX airline customers, and the establishment of a $500 million crash-victim fund for the families of the 346 passengers who died in the crashes.
