Boeing, the world’s second-largest aircraft manufacturer, has agreed to plead guilty to a criminal fraud charge related to the two 737 Max crashes that resulted in the deaths of over 300 people in Indonesia and Ethiopia between 2018 and 2019. This agreement with federal authorities aims to prevent Boeing from facing a costly criminal trial. As part of the deal, Boeing will pay a $243.6 million criminal fine, invest an additional $455 million in compliance and safety programs, and be subject to an independent compliance monitor appointed by the government for at least three years.
While the families of the crash victims have criticized the deal as a minor penalty, the federal government has hinted that Boeing employees could still face future charges. By pleading guilty to felony criminal fraud charges, Boeing will avoid a criminal trial that could have resulted in more severe penalties. However, additional criminal charges involving Boeing executives or employees remain a possibility.
The recent plea deal, which is tied to the misconduct surrounding the 737 Max crashes, does not grant immunity to individual employees at the company. This means that Boeing could still face penalties for alleged misconduct that may have contributed to other safety incidents in recent months. The total fines Boeing could pay as part of the plea deal amount to $487 million, significantly less than the $24.8 billion that crash victims’ families had hoped for in restitution.
Despite the agreement, some families of victims are expected to publicly oppose it, with their lawyers describing the deal as a “sweetheart deal” and a mere “slap on the wrist” that fails to bring about meaningful change within the company. Boeing has confirmed that they have reached an agreement in principle with the DOJ, marking the second deal between the two parties in three years.
The criminal charges stem from the 737 Max crashes in 2018 and 2019, which were linked to a previously undisclosed software issue known as MCAS. Investigations into the crashes revealed that pilots had struggled to control the planes due to the malfunctioning software. Boeing admitted that its employees had withheld information about the design flaw from regulators, leading to the initial charges in 2021.
While this plea agreement settles the disputes from the previous DOJ probe, Boeing continues to face legal challenges. Recent safety incidents, including a door plug detaching mid-flight and other alarming malfunctions, have raised concerns about the company’s practices. A whistleblower complaint filed earlier this year alleged that Boeing’s key supplier had allowed defective plane bodies to leave factory floors. In total, Boeing has been the subject of 32 whistleblower claims in just three years, indicating ongoing issues within the company that extend beyond the 737 Max crashes.
