Key Takeaways
- Boeing has reached a $1.1 billion deal with the US DOJ to avoid prosecution over the 737 Max crashes.
- The deal includes a $487.2 million criminal fine and $444.5 million for a new compensation fund for victims’ families.
- Boeing will commit hundreds of millions of dollars to improve its compliance, safety, and quality control systems.
Arlington: Boeing has reached a non-prosecution agreement with the US Department of Justice (DOJ), allowing the aerospace company to avoid criminal charges linked to two fatal 737 Max crashes in 2018 and 2019 that killed 346 people.
As part of the deal, Boeing will pay over $1.1 billion (£867 million), which includes a $487.2 million criminal fine and $444.5 million for a new compensation fund for victims’ families.
Boeing has committed hundreds of millions of dollars to improve its compliance, safety, and quality control systems to prevent future tragedies.
The DOJ described the agreement as “a fair and just resolution that serves the public interest,” stating it ensures “further accountability and substantial benefits from Boeing immediately, while avoiding the uncertainty and litigation risk presented by proceeding to trial,” according to Euro News.
Boeing has admitted to conspiring to obstruct an FAA investigation by concealing crucial details about a software system known as MCAS, which was involved in both crashes. The system could automatically push the aircraft’s nose down if it received faulty data, contributing to the tragedies in Indonesia and Ethiopia.
“This kind of non-prosecution deal is unprecedented and obviously wrong for the deadliest corporate crime in US history,” said Paul Cassell, a lawyer representing some of the victims’ families. He added that his clients plan to challenge the agreement in court.
Under the deal, Boeing avoids a criminal conviction, preserving its eligibility for US government contracts. The company’s board must also meet with victims’ families to hear their concerns.
The agreement follows a previous 2021 deferred prosecution deal, under which Boeing paid $2.5 billion, including a $243.6 million criminal penalty and $500 million for victims’ families. That deal was nearly up when a door panel detached from a new 737 Max 9 in January 2024, prompting prosecutors to accuse Boeing of breaching its commitments.
Senators Elizabeth Warren and Richard Blumenthal have also criticised the new deal, urging the DOJ not to “allow the company to weasel its way out of accountability for its failed corporate culture.”
The settlement awaits approval by a federal judge.
