U.S. Makes Final Legal Decision on Boeing
On Friday, May 23, the United States Justice Department announced it reached a deal with Boeing for allegedly misleading U.S. regulators about its 737 Max airplane before two crashes five months apart that killed 346 people.
Under the non-prosecution agreement, Boeing will have to “pay or invest” more than $1.1 billion, the DOJ said in its filing in federal court in Texas on Friday, including a $487.2 million criminal fine, though $243.6 million it already paid in an earlier agreement would be credited. It also includes $444.5 million for a new fund for crash victims, and $445 million more on compliance, safety and quality programs, according to CNBC.
“Ultimately, in applying the facts, the law, and Department policy, we are confident that this resolution is the most just outcome with practical benefits,” a Justice Department spokesperson said in a statement, via the Associated Press.
“Nothing will diminish the victims’ losses, but this resolution holds Boeing financially accountable, provides finality and compensation for the families and makes an impact for the safety of future air travelers.”
The airplane manufacturing giant was accused of misleading the Federal Aviation Administration regarding its new software system called MCAS that could turn the plane's nose down without inputs from pilots. In the two accidents that killed 346 people, a faulty reading from a sensor pushed the nose of the plane down and pilots were not able to regain control of the aircraft.
Following the second crash, Max aircraft were grounded worldwide until Boeing redesigned MCAS.
In 2024, prosecutors said Boeing violated the terms of the 2021 agreement by failing to make promised changes to detect and prevent violations of federal anti-fraud laws.
That decision came after a door panel blew off of a nearly new 737 Max 9 operated by Alaska Airlines on Jan. 5, 2024, after the aircraft left Boeing’s factory without key bolts installed.