Boeing has agreed to plead guilty to a criminal fraud conspiracy charge as part of a resolution with the U.S. Justice Department (DOJ) related to the tragic 737 MAX crashes in Indonesia and Ethiopia. These devastating incidents, which occurred between 2018 and 2019, claimed the lives of 346 people and sparked intense scrutiny of Boeing's safety practices.
The plea deal, pending approval from a federal judge, will result in Boeing being classified as a convicted felon and will impose a criminal fine of $243.6 million. This agreement allows Boeing to avoid a lengthy and potentially damaging trial, which could have unveiled even more details about the company's decision-making processes leading up to the crashes.
In addition to the financial penalty, Boeing has committed to investing at least $455 million over the next three years to enhance its safety and compliance programs. The DOJ will appoint a third-party monitor to oversee Boeing's adherence to these new measures, with the company also entering a probation period to ensure no further legal violations occur during the monitor's three-year term.
This resolution comes at a critical time for Boeing, which is preparing to welcome a new CEO later this year and is in the process of seeking approval for its planned acquisition of Spirit AeroSystems. While the guilty plea could impact Boeing's ability to secure future government contracts, including those with the U.S. Defense Department and NASA, the company may pursue waivers to mitigate these effects.
Boeing spokesperson confirmed the agreement, emphasizing the company's commitment to rebuilding trust and prioritizing safety moving forward.
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Boeing to plead guilty to fraud in U.S. probe of fatal 737 MAX crashes
cgtn.com
