Boeing Finalizes Plea Deal with DOJ Over 737 Max Scandals
The U.S. Department of Justice has finalized a plea agreement with Boeing, marking a significant development in the company’s ongoing legal troubles. Under the terms of the deal, Boeing will plead guilty to a felony charge of defrauding the U.S. government and will pay a minimum fine of $243.6 million.
This new settlement follows a separate $243.6 million fine Boeing paid in 2021 for deceiving the Federal Aviation Administration (FAA) during the certification process for the troubled 737 Max aircraft. The new plea deal, however, is still subject to approval by a federal judge, who could potentially impose a higher fine by not crediting the previously paid amount.
In a statement, Boeing pledged to continue working transparently with regulators and emphasized its commitment to enhancing its safety, quality, and compliance programs. The company stated, “We will continue to work transparently with our regulators as we take significant actions across Boeing to further strengthen our safety, quality, and compliance programs.”
The plea agreement, which Boeing accepted two weeks ago, involves a conspiracy charge related to the two fatal crashes of the 737 Max. Critics, including families of the crash victims, have condemned the deal as insufficient and are advocating for a much larger financial penalty. They are also urging the judge to consider a fine in the billions rather than hundreds of millions.
As part of the deal, Boeing’s board of directors is required to meet with victims’ families and their representatives within four months of sentencing. Additionally, Boeing must invest at least $455 million into improving its compliance, quality, and safety initiatives.
While the total financial penalty Boeing faces could reach up to $487 million, it remains significantly less than the $24.8 billion sought by the victims’ families. The agreement reflects ongoing concerns about Boeing’s safety practices, which have been scrutinized since the 737 Max crashes. Recent incidents, including a door plug malfunction on a 737 Max operated by Alaska Airlines, have further damaged the company’s reputation.
The plea deal underscores Boeing’s continued efforts to address and rectify its safety and regulatory failures while navigating the legal and public relations fallout from the 737 Max crises.