Boeing has agreed to plead guilty to one charge of conspiracy to defraud the United States and potentially pay up to $487 million in fines to avoid prosecution, the Justice Department said in a court filing Sunday evening.
But that fine is a fraction of the $24.8 billion that families of crash victims wanted the aircraft maker to pay. The families of victims of two fatal crashes of the 737 Max oppose the deal, the department said.
The agreement stipulates that Boeing will have to operate under the oversight of an independent monitor, to be chosen by the government, for a period of three years. But that oversight and the fine did not satisfy the families of victims, according to their attorney.
“This sweetheart deal fails to recognize that because of Boeing’s conspiracy, 346 people died,” said a statement from Paul Cassell, a law professor of University of Utah who represents many family members of the 2018 Lion Air crash and 2019 Ethiopian Air crash victims.
“This deceptive and generous deal is clearly not in the public interest,” he added. The families are seeking a public trial on the charges.
Boeing issued a brief statement saying only that it can “confirm that we have reached an agreement in principle on terms of a resolution with the Justice Department, subject to … approval of specific terms.”
The guilty plea is a severe blow to the reputation of Boeing, a company once known for the quality and safety of its commercial jets. Beyond the fatal crashes of the 737 Max jets, the company has faced a series of questions about the safety and quality of its planes. In January, a door plug on a 737 Max flown by Alaska Air blew out early in a flight, leaving a gaping hole in the side of the jet, and further damaging Boeing’s reputation.
According to the charges, the company defrauded the Federal Aviation Administration during the process of certifying the 737 Max to carry its first passengers. The plane started service in 2017, but the two fatal crashes led to a 20-month grounding of the jets. Investigations revealed a design flaw in its autopilot system. Boeing has admitted responsibility for the fatal crashes, and that its employees withheld information about the design flaw from the FAA during certification.
In January 2021, the Justice Department and Boeing had reached an agreement to settle criminal charges, and defer any prosecution on the matter. During a three-year probationary period that followed Boeing agreed to improve its quality issues and transparency with the government. But days before that probationary period was due to end came the Alaska Air incident, which opened the door to further Justice Department action.
This is a developing story and will be updated.
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