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 from the Department of Justice (DOJ).
This agreement stems from Boeing misleading regulators about the 737 Max's MCAS system after two fatal crashes and breaching a previous settlement by failing to improve safety and quality control.
The proposed deal includes an additional fine of $243.6 million and a commitment to invest at least $455 million in safety and compliance programs, pending federal judicial approval.
Victim families plan to object to the current plea deal, advocating for greater accountability and a significantly larger fine given Boeing's persistent safety issues.

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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.