Boeing to Plead Guilty in DOJ 737 Max Crash Cases

Federal prosecutors had given the company a choice of entering a guilty plea and paying a fine or facing trial on the felony charge of conspiracy to defraud the U.S.

Meg Godlewski

Monday, July 08, 2024 at 03:48 PM ET

Verified

Edited By:

Kimberly Johnson

Boeing is testifying at a two-day NTSB hearing in Washington, D.C. [Shutterstock]

Key Takeaways:

Boeing has agreed to plead guilty to a criminal fraud charge, admitting it violated a prior agreement and misled the Department of Justice regarding its actions following the two fatal 737 Max crashes.
The plea deal requires Boeing to pay an additional $243.6 million fine and invest at least $455 million in safety and compliance programs.
This action comes after the DOJ determined Boeing failed to uphold commitments to improve safety and quality control processes, a failure underscored by recent incidents such as the Alaska Airlines door plug blowout.
Victim families of the 737 Max crashes are critical of the current plea deal, arguing for stronger accountability, a significantly larger fine, and more comprehensive reforms to Boeing's safety culture.

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Boeing has reached an agreement with the Department of Justice (DOJ) over the company’s actions following two 737 Max crashes that killed 346 people and sparked the grounding of the 737 line for more than a year.

According to the DOJ, Boeing has agreed to plead guilty to a criminal fraud charge after the government determined the aerospace manufacturer had violated an agreement that protected it from prosecution.