Boeing Pleads Guilty to Fraud in 737 Max Crashes, Faces $1.19 Billion in Fines and Oversight
July 8, 2024Boeing agrees to plead guilty to criminal fraud charges related to 737 Max crashes in Indonesia and Ethiopia.
The company admits to a conspiracy to defraud the US government.
Boeing will pay a $487.2 million fine and invest $455 million in compliance and safety programs.
An additional $243.6 million fine is included in the plea deal.
Boeing will be monitored by an independent entity for three years.
Victims' families are pushing for a trial and harsher punishment, believing the penalty is inadequate.
The Defense Department will evaluate the impact on Boeing's government contracts.
The plea deal resolves the fraud charge but does not provide immunity for other potential criminal issues.
Faulty flight-control software was attributed to the crashes.
Boeing faces additional legal challenges, including recent safety incidents and whistleblower complaints.
The FAA has ordered inspections of 2,600 Boeing planes due to concerns about oxygen mask issues.
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