Reuters reported on Wednesday that Boeing will pay a $243.6 million fine to settle fraud conspiracy charges.
Boeing has agreed to plead guilty to fraud conspiracy charges, according to recent court filings. according to According to Reuters, the case comes after aerospace giant Boeing was accused of misleading the Federal Aviation Administration (FAA) about the software features of its 737 MAX aircraft, violating a deferred prosecution agreement in 2021. The plea agreement calls for Boeing to pay a $243.6 million fine.
Boeing pleads guilty in fatal 737 MAX crashes, pays $244 million fine https://t.co/Qo8wD6E2qa pic.twitter.com/2P0uYCO9va
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According to Reuters, the charges stem from allegations that Boeing knowingly provided false information about the 737 MAX's flight-control software, which was reportedly a key factor in two crashes in 2018 and 2019 that killed a combined 346 people. Those incidents eroded public trust in Boeing and led to the global grounding of the 737 MAX aircraft. (Related article: Another Boeing whistleblower speaks out ahead of CEO's Senate testimony)
As part of the plea deal, Boeing will spend at least $455 million over the next three years to strengthen safety and compliance measures, including appointing an independent monitor to oversee Boeing's compliance with the terms of the agreement and publish an annual report on its progress, the media reported. The monitor's term will be three years, during which Boeing will be placed on probation, but this could be extended by one year if the company does not meet its obligations under the agreement.
The logo of American aircraft manufacturer Boeing is displayed during the Paris Air Show at Le Bourget airport in Paris on June 20, 2023. (Photo by GEOFFROY VAN DER HASSELT/AFP via Getty Images)
The agreement between the Justice Department and Boeing allows families of the victims of the two crashes to file objections before Judge Reid O'Connor decides whether to accept the agreement and how much compensation the affected families need, Reuters reported. It also requires Boeing's board of directors to meet with the families of those killed within four months of the ruling. The company confirmed it had submitted the plea agreement to the Justice Department.
“We will continue to work transparently with regulators as we take important steps to further strengthen our safety, quality and compliance programs across Boeing,” the company said, according to Reuters.
