Rescuers work at the scene of an Ethiopian Airlines flight crash near Bishoftu, or Debre Zeit, south of Addis Ababa, Ethiopia, Monday, March 11, 2019.
Mulugeta Ayene | Reuters
Boeing will plead guilty to a criminal fraud charge tied to the fatal 737 Max crashes, the Justice Department said Sunday, months after U.S. prosecutors said the aerospace giant violated a 2021 settlement that shielded it from prosecution.
The plea deal, outlined in a filing late Sunday, requires the approval of a federal judge. Under the deal, Boeing would pay a $243.6 million fine, equal to the amount it paid under the 2021 settlement. An independent compliance monitor would also be installed to oversee compliance at Boeing for three years and the company would have to invest at least $455 million in compliance and safety programs, according to a U.S. prosecutors’ court filing late Sunday.
The plea deal offer forced Boeing to decide between a guilty plea and those terms, or going to trial just as it was seeking to turn a corner in its manufacturing and safety crises, pick a new CEO and acquire its fuselage maker, Spirit AeroSystems.
The plea would brand the planemaker a felon and could complicate its ability to sell to the U.S. government.
“We can confirm that we have reached an agreement in principle on terms of a resolution with the Justice Department, subject to the memorialization and approval of specific terms,” Boeing said in a statement.
In May, the Justice Department said Boeing had violated the 2021 agreement. That settlement was set to expire two days after a door panel blew out of a nearly new 737 Max 9 operated by Alaska Airlines on Jan. 5. While there were no serious injuries, the accident created a fresh safety crisis for Boeing.
The U.S. accused Boeing of conspiracy to defraud the government with the plane maker’s inclusion of a flight-control system on the Max that was later implicated in the two Max crashes — a Lion Air flight in October 2018 and an Ethiopian Airlines flight in March 2019. All 346 people on board the flights were killed.
U.S. prosecutors had told victims’ family members on June 30 that they planned to seek a guilty plea from Boeing, a plan family attorneys called “a sweetheart deal.”
Paul Cassell, a lawyer for victims’ family members, said he plans to ask the federal judge on the case to reject the deal and “simply set the matter for a public trial, so that all the facts surrounding the case will be aired in a fair and open forum before a jury.”
