Boeing 737 MAX aircraft are assembled at the company’s plant in Renton, Washington, U.S. June 25, 2024.
Jennifer Buchanan | Via Reuters
The Justice Department said Boeing had agreed to plead guilty to a criminal fraud conspiracy charge and pay a fine of $243.6 million after the planemaker breached a 2021 deferred prosecution agreement, according to a court filing on Wednesday.
Boeing on July 7 agreed in principle to plead guilty to conspiring to defraud the Federal Aviation Administration after the government said the planemaker knowingly made false representations about key software for the 737 Max.
Families of the 346 people killed in two Boeing 737 Max crashes in 2018 and 2019 will be able to file objections before Judge Reed O’Connor will decide whether to accept the deal and to determine if Boeing owes restitution of the families of those killed.
Boeing confirmed it had filed a detailed plea agreement with the Justice Department. “We will continue to work transparently with our regulators as we take significant actions across Boeing to further strengthen our safety, quality and compliance programs,” the company said.
As part of the deal, the planemaker agreed to spend at least $455 million over the next three years to boost safety and compliance programs, the filing said. Boeing’s board will have to meet with relatives of those killed in the Max crashes within four months of sentencing, the filing added.
The deal also imposes an independent monitor, who will have to publicly file annual progress reports, to oversee the firm’s compliance. Boeing will be on probation during the monitor’s three-year term and it can be extended by a year if Boeing does not comply with the terms.