Boeing will face a felony conviction under an agreement with the U.S. Justice Department to plead guilty to conspiracy to defraud the United States. This plea pertains to Boeing’s misleading of federal regulators during the approval process of the 737 Max jets, two of which crashed in 2018 and 2019, resulting in the deaths of 346 people.
The Justice Department’s late Sunday court filing revealed that Boeing agreed to plead guilty to the fraud charge, which prosecutors deemed “the most serious readily provable offense.” The agreement includes a $243.6 million fine, matching the penalty Boeing paid in 2021 for the same crime. Despite the plea, relatives of the crash victims are contesting the deal, arguing it is too lenient and fails to hold Boeing adequately accountable for the lives lost.
The crashes of the 737 Max jets off the coast of Indonesia and in Ethiopia have severely tarnished Boeing’s reputation, which was once synonymous with quality and safety. The company has faced additional scrutiny over other safety concerns, including a recent incident involving an Alaska Airlines 737 Max, where a door plug blew out mid-flight.
“So again, I’m sorry.” Boeing CEO Dave Calhoun apologizes to families of crash victims during Senate hearing. pic.twitter.com/fXDfeR8cyp
— Mike Sington (@MikeSington) June 19, 2024
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Under the plea agreement, Boeing will be subjected to oversight by an independent monitor for three years, a measure that has not appeased the families of the victims. Paul Cassell, a law professor at the University of Utah and attorney for many of the victims’ families, criticized the deal as a “sweetheart” arrangement that inadequately addresses the gravity of Boeing’s actions. The families are pushing for a public trial and harsher penalties, including a significant fine and charges against Boeing executives.
The plea deal, while representing another black eye for Boeing, helps the company avoid a prolonged and public trial. The final terms of the agreement are not yet public, but Boeing’s acknowledgment of its role in the crashes and the financial penalties mark a critical development in the ongoing fallout from the 737 Max disasters.
Boeing CEO David Calhoun is being raked over the coals by the Senate right now.
He’s making $32.8 million this year. Josh Hawley asks him “What is it you get paid to do exactly?”
The CEO struggles to answer. pic.twitter.com/OhIb0EpXpZ
— More Perfect Union (@MorePerfectUS) June 18, 2024
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