Boeing has reportedly agreed to plead guilty to criminal fraud charges related to the deadly 737 Max crashes, a move that will brand the aerospace giant a felon but avoid a trial. The company is likely to be fined $243 million, a tiny fraction of the company’s $78 billion in annual revenue, and victims’ lawyers have called it a “sweet deal.”
CNBC Reports Aerospace giant Boeing has agreed with the Department of Justice to plead guilty to fraud charges stemming from the deadly 737 MAX crashes. The plea deal, announced late Sunday, comes as Boeing tries to navigate a safety and manufacturing crisis. The agreement, which awaits approval from a federal judge, outlines several key provisions that could have a significant impact on the company’s business and reputation.
Under the terms of the agreement, Boeing could face fines of up to $487.2 million. However, the Department of Justice recommended that the court repay the company $243.6 million it paid in the 2021 settlement. This adjustment effectively reduces the new fine to $243.6 million. The plea agreement also stipulates that Boeing must invest at least $455 million in its compliance and safety programs, underscoring the government’s focus on preventing future safety lapses.
One of the most notable aspects of the agreement is the creation of an independent compliance monitor to monitor Boeing’s operations for three years during a trial period, a step intended to ensure the company adheres to strict safety and regulatory standards going forward. Additionally, Boeing’s board of directors has agreed to meet with the families of the crash victims, a step toward acknowledging the human cost of the company’s failures.
The fraud charges relate to Boeing’s misleading of regulators about the 737 Max’s flight-control system, which has been linked to two catastrophic crashes: the Lion Air crash in October 2018 and the Ethiopian Airlines crash in March 2019, which killed 346 people. The plea deal came after U.S. prosecutors said in May that Boeing had violated a 2021 settlement that initially shielded the company from prosecution for three years.
The settlement could have far-reaching implications for Boeing’s operations. Because the company is a convicted felon, it could face complications when selling products to the U.S. government, but it could seek an exemption. This is especially significant given that about 32% of Boeing’s roughly $78 billion in revenue last fiscal year came from its defense, space and security division.
The agreement has been criticized by some, with lawyers representing the victims’ families describing it as a “sweet deal.” Their lawyer, Paul Cassell, has said he plans to ask a federal judge to throw out the agreement and send the case to public trial, a sentiment that reflects calls for greater transparency and accountability in the case.
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Lucas Nolan is a reporter for Breitbart News covering free speech and online censorship.
