The world’s second largest aircraft manufacturer Boeing has agreed to plead guilty to a criminal fraud charge related to two 737 Max crashes that left more than 300 people dead between 2018 and 2019 in Indonesia and Ethiopia. The proposed plea deal still needs a judge’s approval.
Boeing would agree to pay a $243.6 million criminal fine as part of the deal with the Department of Justice. The company would also invest an additional $455 million into its compliance and safety programs and agree to an independent, government appointed compliance monitor to oversee its operations for at least three years. Though families of the crash victims criticized the deal as an ineffective minor penalty, the federal government suggested Boeing’s employees could still be on the hook for future charges.
By pleading guilty to felony criminal fraud charges brought by the DOJ earlier this year, Boeing will avoid a criminal trial that could have resulted in far greater penalties. But additional criminal charges involving Boeing executives or employees could still be on the table. The most recent plea deal, revealed in court documents on Sunday, are tied specifically to misconduct surrounding the 737 Max crashes. That means Boeing could still face penalties for alleged misconduct that critics and whistleblowers say may have contributed to a spate of high profile safety incidents in recents months. The DOJ, in its filing, said it would provide “no immunity” to any individual employees at the company as part of the agreement.
Boeing could pay up to $487 million in total fines as part of the new plea deal. That’s a far cry from the reported $24.8 billion families of crash victims had hoped to force the company to pay in restitution. Those families of victims are expected to publicly oppose the agreement. Paul Cassell, a lawyer representing some families suing Boeing, told CNN the agreement amounts to a “sweetheart deal” for Boeing. Erin Applebaum,…
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