Boeing Agrees to Plead Guilty to Fraud in Connection with 737 Max Crashes
Boeing has agreed to plead guilty to fraud to avoid going on trial in the United States on charges stemming from two fatal crashes involving its 737 Max. Under the plea deal, Boeing would pay a fine of 2436 million dollars and be required to invest at least 455 million dollars in its compliance and safety programs, as stated by the US Department of Justice in a court filing on Sunday. The agreement also includes Boeing agreeing to be subject to a third-party monitor's assessment of its safety and quality procedures for three years. Boeing confirmed the agreement in principle with the Justice Department, pending the memorialization and approval of specific terms, in a statement. The plea agreement announced on Sunday only pertains to Boeing's responsibility regarding the 737 Max crashes in 2018 and 2019, excluding other incidents like the mid-flight blowout of Alaska Airlines flight 1282 in January, which have raised concerns about the company's safety standards. The deal, requiring the approval of a federal judge, covers only the corporation of Boeing and not any current or former employees. As a convicted felon, Boeing could potentially face exclusion from lucrative government contracts with the US Department of Defense and NASA, although waivers may be sought for continued business with these agencies. The decision for Boeing to plead guilty follows the Justice Department's determination in May that the company breached an earlier deferred prosecution agreement related to the 737 Max crashes, which resulted in the deaths of 346 passengers and crew. As part of the 2021 settlement, prosecutors agreed not to press charges against Boeing for providing misleading information to regulators about the flaws in the 737 Max, if the company paid a 25 billion dollars settlement, which includes the 2436 million dollars fine, and committed to meeting specific conditions for three years. Boeing confessed to deceiving the Federal Aviation Administration about its Maneuvering Characteristics Augmentation System (MCAS), a flight stabilization software program linked to both crashes. Lawyers representing some of the victims' relatives expressed their intention to seek rejection of the agreement by the Texas court where the plea will be entered, stating that the deal fails to acknowledge the consequences of Boeing's actions. According to Paul Cassell, a lawyer for some families, the agreement between Boeing and the DOJ obscures the deadly impact of the company's actions. The source of this information is from Al Jazeera and various news agencies.
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