Boeing has agreed to plead guilty to a criminal fraud conspiracy charge linked to two tragic crashes involving the 737 MAX, in which 346 lives were lost. The guilty plea would make Boeing a convicted felon and the company will pay a hefty fine of $243.6 million.
The plea deal spares Boeing from a contentious trial that could have exposed their decisions leading up to the crashes. Additionally, Boeing has agreed to invest $455 million to enhance safety and compliance programs, with a third-party monitor overseeing their progress.
The US Justice Department gave Boeing the option to accept the plea agreement or face trial for defrauding the Federal Aviation Administration. Families of the crash victims have criticized the agreement, vowing to oppose it in court.
Boeing’s troubles began with a January in-flight incident that exposed ongoing safety issues. The company is pleading guilty to making false representations about a key software feature on the MAX planes, connected to the fatal crashes.
Boeing’s board will meet with families of the crash victims as part of the deal, as the DOJ continues to investigate Boeing’s breach of the previous settlement.