The Justice Department announced that aircraft maker Boeing has agreed to plead guilty to fraud conspiracy charges and pay a $243.6 million penalty for violating a 2021 deferred prosecution agreement, according to a court filing on Wednesday.
Boeing agreed to plead guilty in principle to conspiring to defraud the Federal Aviation Administration on July 7 after the federal government said the company knowingly made false statements about key software on the 737 MAX.
Family members of the 346 people who died in the two Boeing 737 Max crashes in 2018 and 2019 can file objections before Judge Reid O’Connor decides whether to accept the settlement and whether Boeing must pay compensation to the victims’ families.
Boeing confirmed that it had submitted detailed plea agreement details to the Department of Justice.
“We will continue to work transparently with regulators as we take important steps to further strengthen our safety, quality and compliance programs across Boeing,” the company said.
As part of the deal, the plane maker agreed to spend at least $455 million over the next three years to strengthen its safety and compliance programs, according to the filing.
Boeing’s board is required to meet with the families of those killed in the Max crashes within four months of the ruling, according to the filing.
The agreement also mandates the establishment of an independent monitor to oversee companies’ compliance, who must publish annual progress reports.
Boeing will be on probation during the monitor’s three-year term, with the possibility of a one-year extension if it doesn’t comply with the terms.
