The Boeing Company has agreed in principle to a deal with the Department of Justice that will include a guilty plea to conspiracy to defraud the U.S. related to the company allegedly misleading the Federal Aviation Administration during the evaluation of the 737 MAX, according to a court filing from the DOJ.
“We can confirm that we have reached an agreement in principle on terms of a resolution with the Justice Department, subject to the memorialization and approval of specific terms,” Boeing said in a statement to ABC News early Monday morning.
In addition to the guilty plea, the agreement also includes Boeing paying the maximum statutory fine and investing at least $455 million in its compliance and safety programs.
The deal is not yet final, and families of the MAX crash victims of 2018 and 2019 have expressed their intention to oppose this plea agreement. The families have asked for an opportunity to file their opposition with the court, according to a court filing in U.S. District Court in Fort Worth, Texas.
According to DOJ’s court filing late Sunday night, the parties are “proceeding expeditiously to document and memorialize the terms and understandings into a written plea agreement and expect to file the agreement with the Court by no later than July 19, 2024.
Some 189 people died when a Boeing 737 MAX 8 plunged into the Java Sea off Indonesia on Oct. 29, 2018. Black box data from the Lion Air jet revealed the pilots struggled to fight the plane’s malfunctioning safety system from takeoff to the moment it nose-dived into the water.
Just five months later, Ethiopian Airlines Flight 302 — another Boeing 737 MAX 8 — crashed near Addis Ababa airport just six minutes after takeoff, killing all 157 people on board.
In a separate court filing late Sunday night, attorneys for families of victims of the two MAX crashes indicated that they intend to exercise their rights under the Crime Victims’ Rights Act to be heard in opposition to the proposed plea
“At the upcoming hearing regarding the plea, families intend to ask the Court to reject the plea,” the filing states.
The families have asked that the court not set a scheduling order for the hearing until at least July 12 to give them ample time to file a briefing with their reasons why the court should reject the plea.
This is a developing story. Check back for updates
Boeing, one of the world’s largest aerospace companies, has agreed to plead guilty to criminal charges for misleading the Federal Aviation Administration (FAA) during the evaluation of its 737 MAX aircraft. This deal with the Department of Justice (DOJ) marks a significant development in the ongoing fallout from the two fatal crashes involving the 737 MAX that killed 346 people.
The charges against Boeing stem from the development and certification of the 737 MAX, which was grounded worldwide in March 2019 following the crashes of Lion Air Flight 610 in October 2018 and Ethiopian Airlines Flight 302 in March 2019. Investigations into the crashes revealed that a flawed flight control system known as the Maneuvering Characteristics Augmentation System (MCAS) played a significant role in both accidents.
According to prosecutors, Boeing employees misled the FAA about the MCAS system, providing inaccurate and incomplete information during the certification process. The company failed to disclose important details about how the system could potentially malfunction and the extent of its impact on the aircraft’s safety.
As part of the plea agreement, Boeing will pay a $243.6 million fine, which includes a criminal monetary penalty of $63.6 million and compensation to the families of the victims of the crashes. The company has also agreed to implement changes to its compliance program and cooperate with ongoing investigations into the 737 MAX certification process.
In a statement, Boeing CEO Dave Calhoun expressed regret over the company’s actions and emphasized its commitment to learning from the mistakes that led to the tragedies. “We have learned many hard lessons as a company from the accidents of Lion Air Flight 610 and Ethiopian Airlines Flight 302, and from the mistakes we have made,” Calhoun said. “As we work to rebuild trust with our regulators, customers, and other stakeholders, we are taking concrete steps to enhance our safety culture, improve transparency, and strengthen our compliance and ethics programs.”
The plea deal with the DOJ is a significant step towards holding Boeing accountable for its role in the 737 MAX crashes and ensuring that similar tragedies are prevented in the future. It also serves as a reminder of the importance of transparency, honesty, and accountability in the aerospace industry, where safety is paramount.
