Deal reached between Boeing and DOJ: No criminal charges for 737 Max crashes
Boeing and the Department of Justice have reached a preliminary agreement that will prevent the aircraft manufacturer from facing criminal charges for allegedly misleading regulatory bodies about the safety of its 737 Max planes following two fatal crashes that claimed the lives of 346 individuals. The tentative accord, as detailed in a court filing, will see Boeing pay out a total of $1.1 billion in penalties and safety investments, along with setting aside an additional $444 million for the families of victims involved in the crashes.
The payment breakdown includes a criminal monetary penalty of $487.2 million and $455 million aimed at strengthening the company's compliance, safety, and quality programs. Boeing will also commit to improving the effectiveness of its anti-fraud compliance and ethics program to hopefully avoid future accusations of deceiving the government. The Department of Justice will require Boeing's Board of Directors to meet with the families of victims to hear firsthand the impact of the company's conduct and the status of its compliance, safety, and quality programs.
Although this settlement will provide more resources for the surviving families of the victims, it is not the resolution some of the relatives had hoped for. Paul Cassell, an attorney for some of the families, issued a statement earlier this week when news of the agreement started circulating, stating that the families he represents contend it is more important for Boeing to be held accountable to the general public.
The families have objected to the possibility of a plea deal for some time. When the Department of Justice initially worked towards finalizing an agreement last year, Cassell said Boeing was receiving "favorable treatment." Mark Lindquist, another lawyer who represents victim families, stated at the time that the deal "fails to acknowledge that the charged crime of Conspiracy to Defraud caused the death of 346 people. This is a point of contention for victim families who seek accountability and acknowledgment."
The latest agreement, which is likely to move forward, allocates more money than the initial agreement but still falls short of what some of the families may have been anticipating. A spokesperson for the Department of Justice informed the Associated Press, "Nothing will alleviate the victims' losses, but this resolution holds Boeing financially responsible, offers compensation for the families, and make a positive impact on the safety of future air travelers."
The case against Boeing stems from the company's alleged efforts to conceal potential safety concerns with its 737 Max aircraft during the Federal Aviation Administration's certification process. The company is accused of failing to disclose that its software system could cause the plane's nose to descend based on sensor data, regardless of pilot input, which led to two separate flights going nose-first, making it impossible for pilots to regain control, ultimately resulting in the planes crashing.
Boeing previously reached one settlement with the Department of Justice over the 737 Max crashes, agreeing to pay $2.5 billion to avoid prosecution, but it violated the terms of that settlement, leaving it vulnerable to potential charges once more.
Gizmodo reported that the Department of Justice has reached a new agreement with Boeing, valued at $1.1 billion, focused on enhancing Boeing's technology, compliance, and safety programs in thetech industry. The sports world has been following this case closely, as it revolves around the company's alleged deception regarding the safety of its 737 Max planes, with two fatal crashes leading to 346 deaths.
