The Boeing Company on Thursday (local time) agreed to pay over USD 2.5 million to resolve a criminal charge with the US Department of Justice after being accuse
"Boeing's employees chose the path of profit over candor," Justice Department officials said, after reaching a deal with Boeing. Most of the funds will pay airlines whose planes were grounded.
NEW YORK: US prosecutors on Thursday hit Boeing with $2.5 billion in fines, settling a criminal charge over claims the company defrauded regulators overseeing the 737 MAX, which was grounded worldwide following two deadly crashes. The Department of Justice (DOJ) said Boeing reached a deferred prosecution agreement related to the company’s pronouncements to regulators during
Ethiopian Airlines Group CEO, Tewolde GebreMariam, visits the site of a catastrophic 737 MAX airplane crash Ethiopia just after the March 2019 incident. (Ethiopian Airlines Photo via Twitter)
Boeing says it’s entered into a $2.51 billion agreement with the U.S. Justice Department to resolve a criminal charge related to the Federal Aviation Administration’s evaluation of Boeing’s 737 MAX airplanes.
The deferred-prosecution agreement addresses a single charge of conspiracy to defraud FAA inspectors about the safety of the 737 MAX’s automated flight control system. Investigators say changes to a component known as the Maneuvering Characteristics Augmentation System, or MCAS, were to blame in a pair of catastrophically fatal 737 MAX crashes that occurred in Indonesia in October 2018 and in Ethiopia in March 2019.
Boeing hit with $3.2 billion fine after deceiving authorities about fatal flaw
The massive multinational corporation was charged with conspiracy to defraud the United States over making misleading statements to authorities about the safety of its 737 MAX aeroplane.
More than half the payment will go to compensate airlines which have bought the 737 MAX.
Wreckage is piled at the crash scene of Ethiopian Airlines Flight 302.(AP)
Another A$643 million (US$500 million) will go to the heirs, relatives and legal beneficiaries of the 346 passengers who died in the Lion Air Flight 610 and Ethiopian Airlines Flight 302 crashes. The tragic crashes of Lion Air Flight 610 and Ethiopian Airlines Flight 302 exposed fraudulent and deceptive conduct by employees of one of the world s leading commercial airplane manufacturers, Acting Assistant Attorney General David P Burns said in a statement released by the US Justice Department.