Boeing agrees to plea deal, $243m fine for 737 Max crashes

WASHINGTON (NEXSTAR) – Boeing agreed to plead guilty to a fraud charge associated with the crashes of two 737 Max airplanes in 2018 and 2019, but the families of victims said the deal Boeing made with the Department of Justice is a “sweetheart deal.”

“The agreement is a terrible affront to the families,” said Robert Clifford, an attorney representing some of the families. “346 people needlessly died and Boeing is getting away with what the families believe is a slap on the wrist.”

In the agreement, Boeing would agree to plead guilty to a criminal fraud charge. The agreement, which would still have to be approved by a judge, would require Boeing to pay an extra $243.6 million fine and invest $455 million in compliance and safety programs. Boeing would also have to name an independent monitor to oversee safety and quality procedures for three years.

The Justice Department said Boeing deceived the FAA about MCAS, a new flight control system that pushed the nose of the aircraft down. It is blamed for the crashes. Investigators said Boeing didn’t tell pilots or airlines about MCAS.

Boeing agreed to a $2.5 billion settlement and a $243.6 million fine in 2021. However, the Department of Justice said Boeing violated the terms of that agreement, leading to the prosecution.

Sen. Richard Blumenthal (D-Conn.) said this agreement is not the end of oversight for Boeing.