The Justice Department has recommended accepting a plea deal with Boeing over a criminal charge related to software linked to two fatal 737 MAX crashes. This decision comes despite objections from some families of the 346 victims who lost their lives in the crashes.
In the agreement reached last month, Boeing agreed to plead guilty to a criminal fraud conspiracy charge and pay a minimum of $243.6 million after violating a 2021 deferred prosecution agreement. The government stated that Boeing had knowingly provided false information to the Federal Aviation Administration regarding critical software for the 737 MAX.
The Justice Department defended the deal in a court filing, describing it as a significant resolution that holds Boeing accountable and serves the public interest. The agreement requires Boeing to pay a maximum fine of $487.2 million, in addition to the billions already paid in connection with previous legal actions.
Despite calls for higher fines from the families of the crash victims, the Justice Department stated that it could not definitively prove that Boeing’s fraudulent activities directly caused the crashes or that the financial impact exceeded $243.6 million.
As part of the plea deal, Boeing is required to invest $455 million in enhancing its compliance, safety, and quality programs over a three-year probation period. This investment aims to reduce the risk of future fraudulent behavior by the company. Boeing will also be subject to oversight by an independent monitor.
It is important to note that the plea deal does not grant immunity for any other misconduct, including the recent incident involving an Alaska Airlines 737 MAX 9. Additionally, U.S. District Judge Reed O’Connor has the authority to order Boeing to pay restitution to victims’ families, potentially exceeding previous settlements.
Boeing has not yet provided a comment on the recommended plea deal. The Justice Department’s ongoing criminal investigation into the Alaska Airlines incident is separate from the current agreement with Boeing.
By David Shepardson and Jasper Ward
