The Justice Department has announced that Boeing will plead guilty to a fraud charge for misleading U.S. regulators in connection with the approval of the 737 Max jetliner, which was involved in two fatal crashes that claimed the lives of 346 people. The plea agreement, filed in federal district court in Texas, outlines Boeing's admission of using dishonest means to deceive the Federal Aviation Administration (FAA) regarding the 737 Max's flight-control software and pilot training requirements.
The agreement includes a fine of at least $243.6 million, three years of probation, and the appointment of an independent compliance monitor. Boeing has also committed to investing at least $455 million in its compliance, quality, and safety programs. The company has stated its commitment to working transparently with regulators to strengthen these programs.
The plea deal has faced criticism from some quarters, with families of the crash victims expressing disappointment over what they perceive as preferential treatment for Boeing. The agreement comes after Boeing reached a $2.5 billion settlement with the Justice Department in 2021, which included a previous fine of $243.6 million.
The role of the independent monitor is seen as a crucial aspect of the new plea deal, aimed at preventing similar misconduct in the future. While the guilty plea is not expected to impact Boeing's contracts with government agencies, some relatives of the crash victims are calling for a full trial and harsher penalties for the company.
If approved by the court, the plea deal would address the criminal charge related to the 737 Max crashes but would not resolve other potential legal matters. The judge will have the discretion to determine restitution for victims' families and could potentially increase the fine imposed on Boeing.
Lawyers for the families will have the opportunity to file legal motions opposing the plea deal, with Boeing and the Justice Department given the chance to respond before a final decision is made.
