WASHINGTON — The U.S. Department of Justice (DOJ) has reached a settlement with Boeing in a fraud case connected to two fatal crashes involving the 737 MAX aircraft, which resulted in the deaths of 346 people. Under the agreement, Boeing will avoid criminal prosecution.
The settlement requires Boeing to pay over $1.1 billion. This includes a $243.6 million fine and $444.5 million for a compensation fund dedicated to the crash victims’ families.
Initially, Boeing had agreed to plead guilty to a charge of conspiracy to defraud the U.S. government. However, under the new agreement, that plea will not be pursued, and Boeing will not be designated as a convicted felon.
Some relatives of crash victims and members of Congress have criticized the agreement, arguing that it fails to fully hold Boeing accountable for the loss of life.
Several U.S. senators have expressed concerns about the precedent the deal may set for large corporations involved in public safety incidents.
Boeing stated that it will continue efforts to improve safety and compliance and rebuild public trust. The 737 MAX was grounded globally after the crashes, which were linked to issues with the aircraft’s flight control system.
The company has since redesigned the system, and the aircraft has returned to service following regulatory reviews.
