Boeing Pleads Guilty in 737 Max Case

Boeing has agreed to plead guilty to a felony charge of conspiring to defraud the federal government in connection with the two fatal crashes of the 737 Max in 2018 and 2019. This agreement, revealed in a late-night court filing, includes Boeing paying a $487.2 million fine, the maximum allowed by law. Additionally, Boeing will invest at least $455 million over the next three years to enhance its compliance and safety programs.

As part of the deal, Boeing will be placed on probation under the supervision of the Federal District Court for the Northern District of Texas for three years. During this probation period, an independent compliance monitor appointed by the Justice Department will oversee the implementation and adherence to safety measures, providing annual reports to the government. Any violations of the terms will result in further penalties. Moreover, Boeing’s board of directors will have mandatory meetings with the families of the crash victims.

The decision for Boeing to plead guilty is significant as the company has not faced a federal felony conviction in decades. The charge of conspiring to defraud the federal government was described by the department as “the most serious readily provable offense.”

The agreement reached on Sunday stems from Boeing’s failure to comply with a previous agreement made with the Justice Department in 2021, promising significant safety improvements following the tragic crashes. This initiative is part of the Biden administration’s efforts to hold companies like Boeing accountable for their commitments.

A joint filing was made by the department and Boeing on Sunday night to inform the District Court of the preliminary agreement. The formal agreement will be filed in the upcoming week, followed by a court hearing where Boeing will officially enter its guilty plea. During this hearing, victims’ families will have the opportunity to address the court.