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Under the terms of the three-year deferred prosecution agreement, Boeing will pay a total criminal monetary amount of over $2.5 billion, composed of a penalty of $243.6 million and a $1.77 billion commitment to provide Boeing’s airline customers for financial losses resulting from the grounding of the 737 Max.
In addition, a $500 million crash-victim beneficiaries fund will be established to compensate the heirs, relatives, and legal beneficiaries of the 346 passengers who died in the two crashes. This is a substantial settlement of a very serious matter, and I firmly believe that entering into this resolution is the right thing for us to do a step that appropriately acknowledges how we fell short of our values and expectations, Boeing President and CEO David Calhoun said in a memo to employees. While we deeply regret the conduct described in the agreement, I am confident that it isn’t reflective of our employees as a whole or the culture or character of our
Boeing Co. agreed to pay $2.5 billion to settle criminal charges that it defrauded the U.S. government by concealing information about the ill-fated 737 Max that was involved in two fatal crashes.
The U.S. Department of Justice announced today that Boeing has agreed to a $2.5 billion settlement in criminal charges relating to a “conspiracy to defraud” the FAA during the 737 MAX’s certification process.
Cash will go to airlines that bought the danger jets, victims fund Share
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Boeing has agreed to settle a criminal charge that it conspired to commit fraud by deceiving federal aviation officials by withholding safety information about its 737 Max control systems.
The US Department of Justice on Thursday announced the deferred prosecution deal, which imposes obligations that Boeing must meet over the next three years in order to avoid future criminal prosecution.
The deal calls for the US aircraft maker to pay over $2.5bn in penalties and compensation payments to companies that bought the planes and to the heirs, relatives, and beneficiaries of the 346 passengers killed in two 737 Max crashes.