Boeing reaches a plea deal with the Department of Justice (DOJ), shielding the aerospace company from criminal prosecution.
Details of the Plea Deal
Boeing will plead guilty to fraud for approving the 737 Max, which resulted in two plane crashes and 346 casualties. In return, Boeing will pay millions in fines, be subjected to independent monitoring for three years, and be required to invest in safety and compliance measures.
Family members of the deceased victims of the plane crashes in Ethiopia and Indonesia plan to oppose the plea deal.
Findings of the DOJ Investigation
The DOJ investigation revealed that Boeing violated a 2021 agreement protecting the company from prosecution. DOJ claims that Boeing intentionally deceived federal regulators about a flight-control system that ultimately failed and led to two fatal crashes within five months.
Consequences and Penalties
Following the investigation, the DOJ allowed Boeing to plead guilty and pay a fine of $243.6 million or face a criminal trial on charges of conspiracy and fraud against the federal government.
Federal Judge’s Role
Once Boeing enters a plea deal, as is expected, a federal judge must approve the deal.
Financial Penalties and Previous Settlement
The fine of $243.6 million is the second fine of the same amount owed by Boeing since 2021, when the company settled with the DOJ. It was this prior settlement that DOJ investigators say Boeing breached.
Additional Requirements
In addition to the fine, Boeing would be subject to a safety and quality monitor for three years. The monitor would be from an independent party.
Compliance and Safety Improvements
Finally, the plea deal requires Boeing to spend at least $455 million improving its compliance and safety operations.
Scope of the Plea Deal
Notably, the plea deal will only cover Boeing’s incident related to the crashes in Indonesia and Ethiopia. Prosecutors could pursue any other subsequent infractions in the future.
Potential Future Prosecutions
This means that Boeing does not have immunity protections from the plea deal for any actions related to the panel that fell off a Max jetliner in Oregon in 2024.
Individual Liability
Additionally, only the company is a party to the plea deal, and individuals involved could be prosecuted.
Submission to U.S. District Court
The DOJ will submit the particulars of the plea deal to a U.S. District Court in Texas by July 19.
Reactions from Families
Some family members of those who died in the two crashes in Indonesia and Ethiopia are expected to petition the judge to reject the plea deal.
Criticism of the Plea Deal
Paul Cassell, a lawyer for family members of the deceased, said, “This sweetheart deal fails to recognize that because of Boeing’s conspiracy, 346 people died. The deadly consequences of Boeing’s crime are being hidden through crafty lawyering between Boeing and DOJ.”
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