Aircraft giant Boeing has finalized a deal to plead guilty to fraud in the United States after prosecutors found that the company violated a deferred prosecution agreement related to two fatal crashes of the 737 Max jetliner. The plea deal, filed in a federal court in Texas, includes a $243.6 million fine for misleading aviation regulators about software used in the 737 Max, which contributed to crashes in 2018 and 2019 that resulted in 346 fatalities. Additionally, Boeing will invest $455 million in compliance safety programs and appoint an independent compliance monitor while serving three years of organizational probation. The agreement is pending approval by US District Judge Reed O’Connor, with families of the crash victims having the opportunity to file objections within seven days.
Boeing stated that it will continue to work with regulators to enhance safety, quality, and compliance programs across the company. This agreement follows a previous deal in which Boeing paid $2.5 billion in fines and restitution to avoid criminal prosecution but was found to have failed to improve its compliance and ethics program. The US Department of Justice’s court filing outlined Boeing’s violations, including ignoring risky practices and inadequate record-keeping.
Families of the crash victims have criticized the plea agreement, arguing for tougher penalties and criminal charges against current and former Boeing executives. Boeing is also under investigation for a separate criminal probe involving an incident with an Alaska Airlines-operated Boeing 737 Max 9 in March. The company is working to address the concerns raised by regulators and families while pledging to strengthen safety and compliance efforts moving forward.
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