Boeing to Plead Guilty to Fraud

Boeing has agreed to plead guilty to one charge of conspiracy to defraud the United States and may pay up to $487 million in fines, according to a Sunday court filing by the Justice Department. However, this fine is significantly less than the $24.8 billion demanded by families of crash victims, who oppose the deal.

The agreement mandates Boeing to be under the supervision of an independent monitor for three years. Paul Cassell, a law professor representing many family members of the 2018 Lion Air crash and 2019 Ethiopian Air crash victims, criticized the deal, stating, "This sweetheart deal fails to recognize that because of Boeing’s conspiracy, 346 people died." The families are seeking a public trial.

Boeing confirmed reaching an agreement in principle with the Justice Department but did not provide further details. The plea is a severe blow to Boeing's reputation, previously known for the quality and safety of its jets.

The charges stem from Boeing defrauding the Federal Aviation Administration (FAA) during the certification of the 737 Max, which began service in 2017. Two fatal crashes led to a 20-month grounding of the jets, revealing a design flaw in the autopilot system. Boeing admitted its employees withheld information from the FAA during certification.

In January 2021, Boeing and the Justice Department had settled to defer prosecution, with Boeing agreeing to improve its quality and transparency. However, an incident in January with Alaska Air prompted further action just before the probationary period ended.

This story is developing and will be updated as more information becomes available.