Boeing has entered into a plea agreement with the Department of Justice, pleading guilty to one count of criminal fraud.
Federal prosecutors gave Boeing the choice last week of entering a guilty plea and paying a fine as part of its sentence or facing a trial on the felony criminal charge of conspiracy to defraud the United States.
Prosecutors accused the American aerospace giant of deceiving regulators who approved the airplane and pilot-training requirements for it.
This decision comes as a resolution to the charges stemming from the tragic 737 Max crashes that resulted in the loss of 346 lives. The plea deal will see Boeing avoid a trial but incur a fine of $243.6 million, the same amount paid under the 2021 settlement that the company is now accused of breaching.
The plea deal been called “shameful” by many lawyers. “This sweetheart deal fails to recognize that because of Boeing’s conspiracy, 346 people died. Through crafty lawyering between Boeing and DOJ, the deadly consequences of Boeing’s crime are being hidden,” said Paul Cassell, a lawyer for some of the families.
Additionally, Boeing is required to invest at least $455 million in its compliance and safety programs and will be subject to an independent monitor’s oversight for three years.
While this plea deal covers only the corporation’s wrongdoing prior to the crashes, it does not grant immunity for other incidents or for any current or former Boeing officials. This includes a serious incident involving a Boeing aircraft where a door plug was dislodged during flight. The deal also does not cover any current or former Boeing officials, only the corporation.
In a statement, Boeing confirmed it had reached the deal with the Justice Department but had no further comment.
