Boeing will pay a $243.6 million fine to settle criminal fraud conspiracy charges, Reuters reported Wednesday.
Boeing consented to plead guilty to a criminal fraud conspiracy charge as per a recent court filing, according to Reuters. This comes after the aerospace giant allegedly breached a 2021 deferred prosecution agreement by misleading the Federal Aviation Administration (FAA) about the software functionalities of its 737 MAX aircraft. The plea agreement entails Boeing paying a $243.6 million fine.
Boeing to pay $244M fine as part of guilty plea over fatal 737 MAX crashes https://t.co/Qo8wD6E2qa pic.twitter.com/2P0uYCO9va
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The charges stem from accusations that Boeing knowingly provided false information about the 737 MAX’s flight handling software, which was a significant factor in two crashes in 2018 and 2019 that collectively resulted in the deaths of 346 people, Reuters reported. These incidents undermined public trust in Boeing and led to a global grounding of the 737 MAX fleet. (RELATED: Another Boeing Whistleblower Speaks Out Ahead Of CEO’s Senate Testimony)
As part of the plea deal, Boeing will also commit at least $455 million over the next three years to enhance its safety and compliance measures. This includes the appointment of an independent monitor tasked with overseeing Boeing’s adherence to the agreement’s terms and publicly reporting annual progress, the outlet reported. The company is set to be on probation for the duration of the monitor’s three-year term, with a potential extension by one year if Boeing fails to meet its obligations under the deal.
A logo of US aircraft maker Boeing is displayed during the International Paris Air Show at the ParisLe Bourget Airport, on June 20, 2023. (Photo by GEOFFROY VAN DER HASSELT/AFP via Getty Images)
The DOJ’s agreement with Boeing allows families of the victims from the two crashes to file objections before Judge Reed O’Connor decides whether to accept the deal and determine any necessary restitution for the families affected, Reuters reported. Additionally, Boeing’s board is required to meet with relatives of the deceased within four months following the sentencing. The company confirmed submitting a plea agreement to the DOJ.
“We will continue to work transparently with our regulators as we take significant actions across Boeing to further strengthen our safety, quality and compliance programs,” the company said, according to Reuters.
