The United States Justice Department is planning to criminally charge Boeing for its role in the two fatal crashes involving its 737 Max jetliners in 2018 and 2019. Prosecutors have offered Boeing a plea agreement, giving the company until the end of the week to decide whether to plead guilty or go to trial. If Boeing accepts the plea offer, it would be required to pay an additional criminal fine of $243.6 million on top of the $243.6 million already paid as part of a 2021 deferred-prosecution agreement. This would bring the total fine close to $500 million. The plea offer also includes the appointment of an independent monitor to oversee Boeing's compliance with anti-fraud laws for three years. The Justice Department alleges that Boeing violated the 2021 deferred-prosecution agreement by failing to implement an effective compliance program to prevent and detect violations of U.S. fraud laws. The proposed plea deal also includes a $487.2 million financial penalty, restitution, and three years of probation for Boeing. If Boeing refuses to plead guilty, the Justice Department plans to take the company to trial. A guilty plea could have implications for Boeing's ability to enter into government contracts. Victims' relatives expressed anger at the proposed plea deal, viewing it as failing to hold Boeing accountable for the fatal crashes. The families have been pushing for a trial and fines upwards of $20 billion. Boeing has until July 7 to accept the deal, and if rejected, the DOJ will pursue prosecution. [34b19ff0] [d2ae44df] [63ccbcf2] [7669d567]
The U.S. Department of Justice is preparing to offer Boeing a plea deal to resolve a criminal charge of fraud following two fatal crashes of the manufacturer’s 737 Max jet. The plea deal would include a $244 million fine, a three-year probation, and an independent monitor appointed to oversee the company’s progress on safety and quality improvements. The victims’ families have objected to parts of the deal, feeling that it does not hold Boeing accountable for the crashes. The 2021 deferred prosecution agreement expired in January, and in May, the Justice Department determined that Boeing had violated the terms of the agreement, allowing federal prosecutors to once again pursue criminal charges. Boeing has until the end of the week to accept the deal. If accepted, the deal would require Boeing to admit to defrauding safety regulators but does not link Boeing’s actions to the deaths. The families of the victims are prepared to file an objection to the deal. [a50b2b10]
The US Justice Department has presented a plea deal to Boeing in connection with two deadly crashes involving its 737 Max aircraft. If accepted, Boeing would plead guilty to violating a 2021 agreement and avoid a criminal trial. However, families of the crash victims have criticized the deal as a "sweetheart plea deal" that does not acknowledge Boeing's responsibility for the deaths. Boeing's status as a top US defense prime makes it unlikely that the government would impose business sanctions on the company. The US government accounted for 37% of Boeing's revenue last year. While a guilty plea may not hamper Boeing's supply chain, it could lead to tighter regulations and increased scrutiny across the industry. Boeing's credit rating is also at risk of falling further, with Fitch revising its outlook to "negative" and Moody's downgrading its credit rating to one notch above junk status. [7a69328f]