Boeing to plead guilty to charge stemming from 737 Max crashes
Boeing has agreed to plead guilty to criminal fraud tied to the fatal 737 Max crashes, a decision that brands the U.S. aerospace giant a felon.
Boeing has agreed to plead guilty to criminal fraud tied to the fatal 737 Max crashes, a decision that brands the U.S. aerospace giant a felon but allows it to avoid a trial while it tries to turn the page from safety and manufacturing crises.
Under the deal, Boeing would face a fine of up to $487.2 million, though the Justice Department recommended that the court credit Boeing $243.6 million it paid under a previous agreement. So the new fine would be $243.6 million.
If the deal is accepted, it could complicate Boeing’s ability to sell products to the U.S. government as a felon, though the company could seek waivers. About 32% of Boeing’s nearly $78 billion in revenue last year came from its defense, space and security unit.
The Justice Department unveiled the deal late Sunday, months after U.S. prosecutors said the aerospace giant violated a 2021 settlement that shielded it from prosecution for three years.
An independent compliance monitor would also be installed to oversee compliance at Boeing for three years during a probationary period. Boeing would also have to invest at least $455 million in compliance and safety programs, according to a U.S. prosecutors’ court filing late Sunday. The plea deal requires the approval of a federal judge to take effect.
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