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Rescuers work at the scene of an Ethiopian Airlines Boeing 737 Max that crashed near Bishoftu, or Debre Zeit, south of Addis Ababa, Ethiopia, in March 2019.
Boeing will pay more than $2.5 billion to settle a criminal charge related to the two 737 Max plane crashes in 2018 and 2019 that killed 346 people.
The Justice Department has announced that it has reached a deferred prosecution agreement with Boeing to resolve a charge of criminal conspiracy to defraud the FAA.
Boeing admits to criminal misconduct for misleading regulators about the safety of the troubled jetliner, but the airplane manufacturer is not pleading guilty to the charge. If Boeing complies with the terms of the settlement, in three years the government will drop the criminal charge. That s important for Boeing, a huge federal defense contractor, because a criminal conviction would prohibit the company from getting future government contracts.
By Jaclyn Jaeger2021-01-08T18:08:00+00:00
Boeing has agreed to pay over $2.5 billion as part of a three-year deferred prosecution agreement (DPA) entered into with the Department of Justice on Thursday to resolve a criminal charge related to the commercial aerospace manufacturer’s 737 MAX scandal.
The DOJ accused Boeing of conspiracy to defraud the Federal Aviation Administration’s Aircraft Evaluation Group (FAA AEG) during evaluation of the aircraft. Under the agreement, Boeing will pay a criminal penalty of $243.6 million and provide $500 million in additional compensation to the families of passengers killed in two 737 MAX crashes. The remaining $1.77 billion will be paid to airline customers for financial losses resulting from the grounding of the aircraft.
By Bill Galluccio
Jan 8, 2021
Boeing has entered into a deferred prosecution agreement to settle criminal charges for impeding the investigation into the crashes of Lion Air Flight 610 and Ethiopian Airlines Flight 302. Boeing agreed to pay more than $2.5 billion to settle a criminal charge related to a conspiracy to defraud the Federal Aviation Administration s Aircraft Evaluation Group.
Federal prosecutors accused Boeing of deceiving the FAA about an important aircraft part called the Maneuvering Characteristics Augmentation System (MCAS) that impacted the flight control system of the Boeing 737 MAX. The MCAS system was found to be at fault for both crashes. Today s deferred prosecution agreement holds Boeing and its employees accountable for their lack of candor with the FAA regarding MCAS, said Special Agent in Charge
US Justice Department fines Boeing $2.5b for coverup over 737 Max crashes Xinhua | Updated: 2021-01-08 08:59 Share CLOSE A Boeing 737 MAX 7 aircraft lands during an evaluation flight at Boeing Field in Seattle, Washington, Sept 30, 2020. [Photo/Agencies]
WASHINGTON- The US Justice Department announced on Thursday that Boeing has agreed to pay more than $2.5 billion to resolve a criminal charge related to a conspiracy to defraud regulators over the 737 MAX 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, said David P. Burns, acting assistant attorney general of the Justice Department s criminal division.