Federal prosecutors in Texas reach tentative plea deal Boeing and According to court documents, both sides are urging the court to accept the motion despite fierce opposition from the families of hundreds of people killed in the two MAX jet crashes.
Boeing agreed in July, but the process has been delayed by opposition from victims’ families and other groups.
of Criminal cases The lawsuits against Boeing stem from the crashes of two 737 Max jetliners in Indonesia and Ethiopia in 2018 and 2019, killing 346 people. The settlements also include admissions that Boeing employees lied to the Federal Aviation Administration about flight-control software that contributed to the crashes.
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A sign is erected outside a Boeing manufacturing facility in Renton, Washington, Monday, Feb. 5, 2024. Boeing has discovered more mistakes in holes drilled into the fuselage of its 737 Max jetliners, a setback that could further delay deliveries of a critical program already being limited by regulators over quality defects. (David Ryder/Bloomberg via Getty Images)
Boeing lawyers have argued that representatives of the crash victims knew the terms of the deal before Justice Department lawyers offered it to the aerospace giant.
“In short, there was no collusion or anything else improper about the way in which these independent negotiations were conducted,” the companies wrote in Wednesday’s filing.
Federal prosecutors agreed, telling the court they had worked with victims’ families and Boeing’s clients throughout the case.
A Boeing 737 MAX jet, piloted by Federal Aviation Administration Administrator Steve Dickson, prepares to land at Boeing Field after a test flight in Seattle. (AP Photo/Elaine Thompson, File)
“In short, senior Justice Department officials and career prosecutors consulted repeatedly and extensively with the families and the airline’s clients at key junctures in the case, including discussing the terms of the plea agreement,” Shawn Tonoli, senior associate director of the Justice Department’s fraud section, said in a statement to the court. “Their input was heard, considered, and incorporated into the government’s decision-making.”
But lawyers for the victims’ families say the deal, in which Boeing will plead guilty to one count of conspiracy to defraud the government, minimizes the risk of hundreds of deaths.
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“In the proposed plea agreement, Boeing and the government agreed to plead guilty to one count of conspiracy to defraud the government, but apparently wished to avoid the obvious truth that Boeing knowingly engaged in acts that caused the deaths of 346 people,” lawyers for the victims’ families said in an earlier filing. “Perhaps Boeing and the government hope that the Court will accept this false statement in order to favorably evaluate the appropriateness of the plea agreement and proposed sentencing terms. However, Boeing’s guilt has already been determined by this Court.”
The Boeing Building was photographed on Saturday, Sept. 17, 2022, in Chicago. (Kamil Krzaczynski, FOX News)
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Lawyers for the victims pointed to an earlier ruling by the same court that found that “without Boeing’s fraudulent conduct, the crash would not have happened.”
“Corporate criminals like Boeing should not be allowed to escape the truth or the consequences of their actions, especially in situations like this one, where the crimes charged ‘resulted in death or involved a foreseeable risk of death,'” the victims’ lawyers wrote.
In addition to stiffer fines and damages, lawyers for the victims have suggested Boeing set up an escrow fund to cover future crashes.
Justice Department lawyers countered that they could not prove beyond a reasonable doubt that Boeing’s fraudulent conduct caused the plane crashes.
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The settlement requires Boeing to pay restitution to the victims’ families as determined by the court, invest $455 million in compliance and safety programs, and pay a criminal penalty of $487.2 million, half of which Boeing has already paid since filing the lawsuit. Violated the terms Boeing will also have to produce its previous settlement offer and submit to review by an independent watchdog.
Boeing’s former CEO, Dave Calhoun, announced he was stepping down earlier this year as the company faced legal and public relations problems. Other executives and directors, including the head of the 737 Max program, have also announced their intention to leave the company.
Boeing did not immediately respond to a request for comment Thursday.
Fox News’ Landon Mion contributed to this report.
