Boeing is accepting a sweetheart settlement agreement with Joe Biden‘s Department of Justice (DOJ) in which the company will plead guilty to a fraud charge but avoid a criminal trial related to two deadly 737 MAX crashes. The crashes, which occurred in Indonesia and Ethiopia within a five-month span across 2018 and 2019, claimed 346 lives. According to a late Sunday court filing by the DOJ, the company will pay a fine of $243.6 million as part of the settlement.
The settlement, pending approval by a judge, has received sharp criticism from the families of the victims, who described it as a lenient reprimand. Federal prosecutors had given Boeing a choice last week: plead guilty and pay a fine or face a trial on the felony charge of conspiracy to defraud the United States. The charges stem from accusations that Boeing misled regulators regarding the aircraft and its pilot training requirements.
Attorney Erin Applebaum, representing some victims’ families, referred to the agreement as a mere “slap on the wrist.” These families are urging Judge Reed O’Connor, overseeing the case, to reject the settlement. In a February 2023 ruling, Judge O’Connor described Boeing’s actions as potentially the “deadliest corporate crime in U.S. history.”
As part of the settlement, Boeing commits to spending at least $455 million over three years to enhance safety and compliance programs. The company’s board will also be required to meet with the relatives of the victims. Additionally, an independent monitor will supervise Boeing’s compliance and provide annual public progress reports during a three-year probation period.
Last month, Boeing CEO Dave Calhoun told U.S. lawmakers on Capitol Hill that he was proud of his company’s safety record—despite several recent instances of equipment failure that nearly resulted in mid-air disasters.
Missouri Sen. Josh Hawley questioned Boeing’s chief executive Tuesday about his $32.8 million salary.
Dave Calhoun’s appearance was the first before Congress by a high-ranking Boeing official since a panel blew out of a 737 Max during an Alaska Airlines flight in January. pic.twitter.com/6VSXud6oTk
— The Associated Press (@AP) June 18, 2024