Boeing, one of the largest companies in the US, has finalized a plea deal with the US Department of Justice (DoJ) over its involvement in two fatal crashes of its 737 MAX jets that occurred more than five years ago. The crashes, which took place in Ethiopia and Indonesia, claimed the lives of 346 people. Under the plea deal, Boeing will plead guilty to defrauding the US government and pay an additional fine of $243.6 million on top of a previous fine of the same amount. The plea deal is subject to the approval of a federal judge. [4fe28ff5] [91ea3eb2] [6d552d91] [3d17d59c] [37b96285] [6483a69a] [2d369b1d] [f2976787]
However, the plea deal has faced significant backlash from the families of the crash victims. They argue that the fine is insufficient given the magnitude of the tragedy. US District Judge Reed O'Connor is set to hold a hearing on October 11, 2024, to address these objections. The families are seeking a more substantial restitution, arguing that the current penalties do not adequately reflect the loss of life. [5d46d6b8]
In addition to the fines, Boeing has agreed to invest at least $455 million into compliance, quality, and safety programs. This investment is aimed at addressing the failures identified by the DoJ in Boeing's compliance and ethics program. The DoJ found that Boeing had failed to improve its program, which was a breach of a 2021 deferred prosecution agreement. The original deferred prosecution agreement required Boeing to pay $2.5 billion in fines and restitution in exchange for immunity from criminal prosecution. [4fe28ff5] [91ea3eb2] [6d552d91] [3d17d59c] [37b96285] [6483a69a] [2d369b1d] [f2976787]
The guilty plea and fine further damage Boeing's reputation, which has already been tarnished by the 737 MAX crashes and subsequent investigations. Critics of the plea deal view it as lenient, considering the magnitude of the crashes and the loss of life. Polish airline LOT has also claimed $250 million in damages and is seeking equal rights in the case. The Justice Department supports the plea deal, stating it holds Boeing accountable, but the families of the victims remain unconvinced. [5d46d6b8] [4fe28ff5] [91ea3eb2] [6d552d91] [3d17d59c] [37b96285] [6483a69a] [2d369b1d] [f2976787]