By Jerald Jimenez
25 Jul 2024, 15:04 PM EDT
Boeing has agreed to plead guilty to one count of criminal fraud conspiracy and pay $243.6 million, according to the Justice Department, a decision that comes after the aircraft maker breached a 2021 deferred prosecution agreement.
The company agreed in principle to plead guilty to conspiring to defraud the Federal Aviation Administration on July 7. The decision came after the government said the planemaker knowingly made false statements about key software for the 737 MAX.
Families of the 346 people killed in two Boeing 737 MAX crashes in 2018 and 2019 will have the opportunity to file objections before Judge Reed O’Connor decides whether to accept the settlement. It will also be determined whether Boeing owes restitution to the families of those killed.
“We will continue to work transparently with our regulators as we take significant steps at Boeing to further strengthen our safety, quality and compliance programs,” Boeing said.
As part of the agreement, Boeing has committed to spend at least $455 million over the next three years to boost safety and compliance programs.
Boeing’s board of directors will meet with the families of those killed in the MAX crashes within four months of the ruling.
An independent monitor has been appointed to ensure Boeing’s continued compliance with the terms of the agreement. This monitor will provide annual progress reports to the public to oversee the company’s compliance.
The company will be placed on probation for the duration of the monitor’s three-year term. The probation period will be extended for another year if Boeing fails to comply with the terms of the agreement.
With information from New York Post