Boeing Accepts Plea Deal to Avoid Criminal Trial Over 737 Max Crashes, Announces U.S. Justice Department

Photo : Reuters

Prosecutors have accused Boeing of deceiving regulators who approved the 737 Max airplane and its pilot-training requirements. In a significant legal development, Boeing will plead guilty to a criminal fraud charge related to the two fatal crashes of 737 Max jetliners. The U.S. Justice Department announced this decision on Sunday night, following the government's determination that Boeing violated a prior agreement that had protected the company from prosecution for more than three years.

Federal prosecutors presented Boeing with a choice this week: either enter a guilty plea and pay a fine as part of its sentence or face trial on the felony criminal charge of conspiracy to defraud the United States. This plea deal, which requires approval from a federal judge to take effect, mandates Boeing to pay an additional $243.6 million fine. This amount mirrors the fine paid under the 2021 settlement, which the Justice Department stated Boeing had breached. Furthermore, an independent monitor will be appointed to oversee Boeing's safety and quality procedures for a period of three years.

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The plea agreement pertains solely to Boeing's misconduct before the crashes, which resulted in the deaths of all 346 passengers and crew members on board two new Max jets. It does not extend immunity to Boeing for other incidents, such as the January incident where a panel blew off a Max jetliner during an Alaska Airlines flight. The agreement also excludes any current or former Boeing officials, applying only to the corporation itself.

Federal prosecutors have charged Boeing with conspiracy to defraud the government by misleading regulators about a flight-control system implicated in the crashes, which occurred in Indonesia in October 2018 and Ethiopia less than five months later. As part of the January 2021 settlement, the Justice Department had agreed not to prosecute Boeing on this charge if the company adhered to certain conditions for three years. However, prosecutors alleged last month that Boeing had violated the terms of this agreement.

The company's guilty plea will be entered in U.S. District Court in Texas. The judge overseeing the case, who has previously criticized Boeing's "egregious criminal conduct," has the authority to either accept the plea and the proposed sentence or reject the agreement, which could lead to new negotiations between the Justice Department and Boeing.

Relatives of those who perished in the crashes were informed of the plea offer a week ago and have indicated their intention to ask the judge to reject it. A criminal conviction could potentially lead to Boeing being barred from doing business with the U.S. government for a set period, a significant concern given Boeing's role as a major contractor for the Defense Department and NASA.