Boeing Settles to Sidestep 737 Max Crash Trial, Says Justice Dept.
This week, federal prosecutors presented Boeing with a choice: plead guilty and pay a fine, or face trial on the charge of conspiracy to defraud the United States. The plea deal, which needs a federal judge's approval, stipulates that Boeing pay an additional $243.6 million fine—equivalent to the fine from the 2021 settlement the Justice Department claims Boeing breached. An independent monitor will also be appointed for three years to oversee Boeing’s safety and quality protocols.
The plea agreement addresses only Boeing's actions before the crashes, which resulted in the deaths of 346 people aboard two new Max jets. It does not provide immunity for other incidents, such as the January event where a panel detached from a Max jetliner during an Alaska Airlines flight. The agreement applies solely to the corporation, excluding current and former Boeing officials.
Boeing has been charged with conspiracy to defraud the government by misleading regulators about a flight-control system linked to the crashes in Indonesia in October 2018 and Ethiopia in March 2019. The 2021 settlement had initially spared Boeing from prosecution if it met certain conditions over three years. However, prosecutors recently alleged that Boeing violated these terms.
The company's guilty plea will be submitted in U.S. District Court in Texas. The presiding judge, who has previously criticized Boeing's conduct, has the power to accept or reject the plea and proposed sentence, potentially leading to further negotiations.
Families of the crash victims were informed of the plea deal a week ago and plan to request the judge to reject it. A criminal conviction could lead to Boeing being barred from U.S. government contracts, a significant issue given its major role with the Defense Department and NASA.
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