Boeing Agrees with Department of Justice to Evade Criminal Indictments Regarding 737 Max Aircraft Mishaps
Boeing and the Department of Justice have arrived at a preliminary agreement to avoid criminal charges against the airplane manufacturer for allegedly deceiving regulators regarding the safety of its 737 Max planes before two deadly crashes that claimed 346 lives. The proposed deal, as detailed in a court filing, mandates Boeing to pay $1.1 billion in penalties and safety investments, with an additional $444 million set aside for the families of victims involved in the crashes.
The settlement includes Boeing's payment of $487.2 million as a criminal monetary penalty and $455 million to bolster the company's compliance, safety, and quality programs. Additionally, the aircraft manufacturer will commit to strengthening its anti-fraud compliance and ethics program to avoid future allegations of misconduct. The Department of Justice will also require Boeing's Board of Directors to meet with the families of victims to discuss the impact of the company's conduct and its safety measures.
While the settlement provides more funds for the surviving families of the victims, the resolution does not meet the expectations of all the bereaved relatives. Paul Cassell, a lawyer representing some of the families, issued a statement this week, stating, "The families I represent contend that it is more important for Boeing to be held accountable to the flying public."
The families have expressed opposition to a plea deal for some time. When the DOJ first attempted to finalize an agreement last year, Cassell stated that Boeing was receiving "sweetheart" treatment. Another attorney, Mark Lindquist, who represents victim families, echoed similar sentiments at the time, stating that the deal "fails to acknowledge that the charged crime of Conspiracy to Defraud caused the death of 346 people."
A Department of Justice spokesperson told the Associated Press, "Although nothing can diminish the victims' losses, this resolution holds Boeing financially accountable, provides finality and compensation for the families, and contributes to the safety of future air travelers."
The case against Boeing originates from allegations that the company attempted to hide potential safety concerns with its 737 Max aircraft during the Federal Aviation Administration's certification process. The company is accused of failing to disclose a software system that could cause the plane's nose to descend without pilot input based on sensor data. Faulty sensor readings from this system caused two separate planes to dive nose-first, leaving the pilots incapable of regaining control, ultimately resulting in the crashes.
Boeing previously settled with the Department of Justice over the 737 Max crashes, agreeing to pay $2.5 billion to avoid prosecution, but the company allegedly violated the terms of that settlement, reopening the possibility of charges.
[1] Enrichment Data - Overall: Based on the updated agreement between Boeing and the U.S. Department of Justice, Boeing will pay over $1.1 billion, with specific compensation allocated for the families of victims. The agreement dismisses the fraud charge against Boeing, and the company will implement changes to its safety and compliance programs. Despite various demands for a public trial, the resolution offers financial accountability and future safety improvements.
- Despite the settlement, some families of the victims are dissatisfied with the agreement, as they believe it does not hold Boeing accountable enough to the general public.
- The settlement between Boeing and the Department of Justice involves Boeing paying $1.1 billion, a portion of which will go to the families of victims, in addition to improvements in the airplane manufacturer's safety and compliance programs.
- The deal with Boeing addresses the allegations that the company attempted to deceive regulators about the safety of its 737 Max planes, which led to two fatal crashes.
- The case against Boeing not only involves the aircraft industry but also extends into the realm of finance, politics, and general news, as it encompasses matters of safety, accountability, and ethics.
- The agreement dismisses the fraud charge against Boeing, but it does not rule out the possibility that future violations of law could lead to additional charges, as the company has allegedly violated the terms of a previous settlement.
