Boeing to Plead Guilty to Fraud Charge in 737 Max Crash Cases

The Justice Department claims Boeing has agreed to enter a guilty plea to a criminal fraud allegation connected to the two 737 Max jetliners’ disasters. Following government claims the corporation broke an agreement shielding it from prosecution for more than three years, this plea results. The guilty plea will be entered into Texas US District Court.

Federal prosecutors presented Boeing with two options: either stand trial on the felony criminal allegation of conspiracy to defraud the US or enter a guilty plea and pay a fine. The corporation was accused of misleading authorities on permitted aircraft and pilot-training standards.

Boeing acknowledged in a July 7 statement to ABC News, “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.”

The deal mandates Boeing pay the maximum statutory fine and commit at least $455 million to its compliance and safety initiatives. Still, this agreement is not official and requires approval by a federal judge. The plea agreement offers no immunity for later events and only addresses corporate misbehavior prior to the crashes. It also relates just to the company, not to any Boeing executive.

Families of the 2018 and 2019 crash victims are dissatisfied with the situation and can object to the plea deal since they feel they should be let to present their objections before the court.

By July 19, 2024 the DOJ hopes to have the plea deal filed. The contract was criticized as not acknowledging the grave repercussions of Boeing’s activities since the crashes claimed 346 lives.