The U.S. Department of Justice has reached a settlement with Boeing that will allow the aviation giant to avoid criminal prosecution for allegedly misleading regulators about the 737 Max jetliner before two of the planes crashed, causing the deaths of 346 people.
Boeing will pay a hefty fine and invest in safety programs, shelling out about $1.1 billion, including an additional $445 million for the families of the crash victims. In return, the department will file fraud charges in the criminal case against the company.
“Nothing will diminish the victims’ losses, but this resolution holds Boeing financially accountable, provides finality and compensation for the families and makes an impact for the safety of future air travelers”, a justice department spokesperson said in a statement.
Many relatives of the passengers who died in the crashes, which occurred off the Indonesian coast and in Ethiopia less than five months apart in 2018 and 2019, have for years called for a public trial, the indictment of former company officials, and harsher financial punishment.
“Although the DOJ proposed a fine and financial restitution to the victims’ families, the families that I represent contend that it is more important for Boeing to be held accountable to the flying public,” said Paul Cassell, attorney for several families involved in the case.
Boeing has been accused of misleading the Federal Aviation Administration about certain aspects of the Max before the agency certified the plane’s fitness to fly. The company also allegedly failed to inform airlines and pilots of the craft’s new software system, MCAS, which could lower the front end of the plane, without pilot intervention, if a sensor detected a potential aerodynamic stall.
The 737 Max crashed after an incorrect sensor reading pushed the aircraft down, with the pilots unable to regain control. After the second crash, the company’s aircraft were grounded around the world until the company redesigned the MCAS system.
In 2021, Boeing avoided prosecution by reaching a $2.5 billion settlement with the DOJ. However, last year prosecutors said the company violated the terms of the 2021 agreement by failing to make promised changes to detect and prevent violations of federal anti-fraud laws.
Last July, the company agreed to plead guilty to the aggravated fraud charge. But in December, U.S. District Judge Reed O’Connor of Fort Worth rejected the plea deal.
The agreement called for the appointment of an independent auditor to oversee Boeing’s safety and quality procedures for three years.
Under the agreement announced Friday, Boeing must now hire a consultant who will make recommendations for “further improvements” and liaise with the government.
