Boeing Pleads Guilty to Fraud in Deadly 737 Max Crashes

Written by Kathrine Frich

Jul.08 - 2024 11:00 AM CET

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Photo: Shutterstock
Photo: Shutterstock
Boeing has committed to investing at least $455 million to enhance its safety.

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Boeing has announced that it will plead guilty to a criminal fraud charge in connection with the fatal crashes of two 737 Max aircraft between 2018 and 2019, which claimed the lives of 346 people.

Shielded From Prosecution

According to ElEconomista the U.S. government determined that Boeing violated a 2021 agreement related to the crashes, which had shielded the company from prosecution for over three years. Prosecutors accused the aerospace giant of deceiving regulators about the plane's flight control system and pilot training requirements.

The plea agreement, which still requires approval from a federal judge, includes a substantial fine of $243.6 million. Should Boeing reject this path, it would face trial on the criminal conspiracy charge of defrauding the United States.

The plea deal specifically addresses Boeing's misconduct before the accidents and does not grant immunity for other incidents, such as the Alaska Airlines incident in January, according to the Department of Justice. The agreement also does not cover any current or former Boeing officials, only the corporation itself.

Enhances Safety

As part of the agreement, Boeing has committed to investing at least $455 million over the next three years to enhance its safety and compliance programs. Additionally, the company must publicly present annual reports to the court detailing its progress.

According to Reuters, a guilty plea could jeopardize Boeing's ability to secure lucrative government contracts with agencies like the U.S. Department of Defense or NASA, although the company may seek exemptions.