Boeing to plead guilty to a criminal fraud charge, avoiding a criminal trial

( WJET/WFXP ) — Boeing has agreed in principle to a deal with the U.S. Department of Justice (DOJ) which includes a guilty plea to conspiracy to defraud the U.S. This charge is in connection to the company misleading the FAA during its evaluation of the 737 MAX.

The plea deal also includes Boeing paying the maximum statutory fine of $487.2 million with a credit of $243.6 million that Boeing has already paid. Boeing would also invest at least $455 million in its compliance and safety programs. The Court will determine, at its discretion, the restitution amount for the families of the MAX crash victims. The deal also will require an independent compliance monitor to oversee Boeing for three years.

Boeing said in a statement: “We can confirm that we have reached an agreement in principle on terms of a resolution with the Justice Department, subject to the memorialization and approval of specific terms”

It is important to note that this deal is not yet final, the families of the MAX crash victims have vowed to oppose any plea agreement. According to a court filing, they have asked for an opportunity to file their opposition with the court.

According to DOJ’s court filing, the parties are “proceeding expeditiously to document and memorialize the terms and understandings into a written plea agreement and expect to file the agreement with the Court by no later than July 19, 2024.”

The plea agreement will not provide Boeing with immunity for any other conduct, including any conduct that may be the subject of any ongoing or future Government investigation of the Company. Boeing will also not be charged with any additional criminal offense released to the conduct in this case.

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