Boeing agreed late Sunday, July 7, to plead guilty to a criminal fraud conspiracy charge related to two deadly crashes involving its 737 Max jets. With the guilty plea, Boeing will be labeled a criminal felon, potentially jeopardizing the company’s ability to secure government contracts.
As part of the plea agreement with the Department of Justice, Boeing will pay an additional $243.6 million fine, on top of a previously paid $243 million fine.
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Boeing has also agreed to invest at least $455 million in safety and compliance programs.
The plea deal comes after the DOJ found that Boeing violated a 2021 agreement to implement safety changes following the crashes in Indonesia and Ethiopia in 2018 and 2019, which killed 346 people.
The plea deal still requires a judge’s approval. Families of the victims say they will ask the judge to reject the deal, as they prefer Boeing to face a trial and harsher penalties.
[KARAH RUCKER]
LATE SUNDAY NIGHT – BOEING AGREED TO PLEAD GUILTY TO A CRIMINAL FRAUD CONSPIRACY CHARGE IN CONNECTION TO TWO DEADLY PLANE CRASHES INVOLVING ITS 737 MAX JETS.
WITH THE GUILTY PLEA – BOEING WILL BE BRANDED A CRIMINAL FELON WHICH COULD JEOPARDIZE THE COMPANY’S ABILITY TO SECURE GOVERNMENT CONTRACTS.
AS PART OF THE PLEA AGREEMENT WITH THE DEPARTMENT OF JUSTICE – BOEING WILL PAY AN ADDITIONAL 243 POINT 6 MILLION DOLLAR FINE – ON TOP OF A PREVIOUS 243 MILLION DOLLAR FINE THE COMPANY HAS ALREADY PAID.
AND BOEING HAS ALSO AGREED TO INVEST AT LEAST 455 MILLION DOLLARS IN SAFETY AND COMPLIANCE PROGRAMS.
THE PLEA DEAL FOLLOWS THE DOJ’S FINDINGS THAT BOEING BREACHED A 20-21 AGREEMENT TO MAKE SAFETY CHANGES FOLLOWING THE TWO CRASHES IN INDONESIA AND ETHiOPIA IN 20-18 AND 20-19 THAT KILLED 346 PEOPLE.
THE PLEA DEAL STILL REQUIRES A JUDGE’S APPROVAL.
FAMILIES OF THE VICTIMS OF THOSE FATAL CRASHES SAY THEY WILL ASK THE JUDGE TO REJECT THE DEAL – AS THEY WANT BOEING TO FACE A TRIAL AND HARSHER PENALTIES.
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