US Department of Justice finalizes plea deal with Boeing
A logo on the body of a Boeing Co. 777-9 passenger aircraft at the Dubai Air Show in Dubai
By Ramishah Maruf and Chris Isidore, CNN
New York (CNN) — The US Department of Justice on Wednesday for the first time shared details of its finalized plea deal agreement with Boeing, in which the troubled aviation company will plead guilty to a felony charge of defrauding the US government.
Boeing agreed to pay a fine of at least $243.6 million as part of this new plea agreement. The company already paid a separate $243.6 million fine in 2021 when it admitted to defrauding the Federal Aviation Administration when seeking permission for the troubled 737 Max plane to carry passengers.
The plea deal is subject to approval by a federal judge, who could double the amount of the new the fine — by not granting Boeing a credit for the fine it already paid.
“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,” Boeing said in a statement.
Boeing agreed to plead guilty two weeks ago to one charge of conspiracy to defraud the United States for its role in two fatal 737 Max crashes, in an agreement that many critics of Boeing – including crash victims’ families – slammed as a sweetheart deal. The victims families’ attorney will now argue to the judge that the fine should be in the billions of dollars, not hundreds of millions.
However, one additional condition detailed in a new filing on Wednesday is that Boeing’s board of directors will have to hold a meeting with victim families and their legal representatives within four months of the sentencing date.
Boeing will also have to invest at least $455 million into its compliance, quality and safety programs, the agreement states.
Boeing is to pay up to $487 million in fines — a fraction of the $24.8 billion that families of crash victims wanted the aircraft maker to pay. It had already paid half the fine as part of the original plea deal in 2021. The families of victims of two fatal crashes of the 737 Max oppose the deal, the Justice Department said.
The guilty plea and subsequent terms further hurt Boeing’s reputation. The company has faced a series of questions about the safety and quality of its planes, beginning with the fatal crashes of the 737 Max jets. And in January, a door plug on a 737 Max flown by Alaska Airlines blew out early in a flight, leaving a gaping hole in the side of the jet.
– CNN’s Hannah Rabinowitz contributed to this report.
The-CNN-Wire
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