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- 07/08/2024 – Boeing Agrees to Plead Guilty in 737 MAX Criminal Fraud Case – WSJ Plane maker faces conviction and a $244 million fine for misleading air-safety regulators before two fatal crashes that killed 346 people
Pleading guilty creates business challenges for Boeing. Companies with felony convictions can be suspended or barred as defense contractors. Boeing is expected to seek a waiver from that consequence. The company was awarded Defense Department contracts last year valued at $22.8 billion, according to federal data. Boeing and the Defense Department are in talks on the issue, a person familiar with the matter said.
Also as part of the plea agreement, Boeing’s board of directors agreed to meet with victims’ family members.
The plea deal falls short of what families of the MAX crash victims had wanted. They had asked federal prosecutors to seek a fine as high as about $25 billion, prosecute Boeing at trial without concessions, and pursue other charges against the company and executives they believe are responsible for the crashes. Justice Department officials have told the families they faced various legal hurdles, including a statute of limitations and a lack of evidence to prove alternative charges such as manslaughter beyond a reasonable doubt. An earlier attempt to prosecute a Boeing employee over the allegations failed at trial.
The company faces three years of court-supervised probation during which it could face additional penalties if it fails to comply with the terms. The decision was disclosed in a filing by the Justice Department in federal court in Fort Worth, Texas. Prosecutors asked the court to schedule a hearing in July on the plea agreement.
