Rescue workers work at the scene of the Ethiopian Airlines flight crash near Bishoftu or Debre Zeit, south of Addis Ababa, Ethiopia, Monday, March 11.
Mulugeta Ayene | Mulugeta Ayene Reuters
boeing company Agreeing to plead guilty to criminal fraud related to fatal 737 Max crashes, the decision casts the U.S. aerospace giant as a felon but allows it to avoid a trial while it tries to reverse safety and create a crisis.
Under the agreement, Boeing faced fines of up to $487.2 million, but the Justice Department recommended that the court credit Boeing with half of the amount it paid under the previous agreement, resulting in a fine of $243.6 million. The plea agreement requires approval from a federal judge to take effect.
If the deal is accepted, it could complicate Boeing’s ability to sell products to the U.S. government as a felon, although the company may seek immunity. About 32% of Boeing’s nearly $78 billion in revenue last year came from its defense, space and security segment.
A Defense Department official said on Monday that the Defense Department will review Boeing’s remediation plan and its agreement with the Justice Department “to determine what steps are necessary and appropriate to protect the federal government.”
The plea agreement also creates an independent monitor to monitor Boeing’s compliance for three years during the probation period. Boeing must also invest at least $455 million in compliance and safety programs, according to a court filing.
Boeing also agreed to allow the board of directors to meet with the families of the crash victims.
The Justice Department unveiled the deal late Sunday, months after U.S. prosecutors said the aerospace giant violated the law. 2021 Settlement This gave it immunity from prosecution for three years.
The offer of the plea deal forces Boeing to choose between a guilty plea and additional terms, or go to trial, as the company is seeking turn In its Manufacturing and safety crises, Pick a new CEO and get its airframe manufacturer, spirit aerospace systems inc..
“We can confirm that we have reached an agreement in principle with the Department of Justice on the terms of the resolution, subject to the submission of a memorandum and approval of specific terms,” Boeing said in a statement after filing the court filing.
In May this year, the U.S. Department of Justice stated that Boeing had Breach of 2021 Settlement Agreement. Under the deferred prosecution agreement, Boeing agreed to pay $2.5 billion, including $243.6 million in criminal fines, restitution to airlines and a $500 million fund for victims’ families.
The 2021 settlement is set to expire two days after a door panel exploded on a nearly new 737 Max 9 aircraft operated by the company. Alaska Airlines On January 5, although no serious injuries were caused, the accident brought a new safety crisis to Boeing. Preliminary Report The National Transportation Safety Board found that a key bolt holding the door panel in place was not attached to the aircraft.
U.S. accuses Boeing of conspiring to defraud government misleading regulators Regarding the flight control system included on the Max and later related to both aircraft collapse — Lion Air flight in October 2018 and Ethiopian Airlines flight in March 2019.
U.S. prosecutors told families of crash victims on June 30 that they Plans to seek guilty plea from BoeingFamily lawyers called the plan a “sweetheart deal.”
Late Sunday night, shortly after the plea agreement was filed in federal court, the victims’ families said in a filing of their own that they would oppose the plea deal, arguing that it “unfairly imposes a burden on Boeing that other criminal defendants would never accept.” concessions, and failed” to hold Boeing responsible for the deaths of 346 people. “
Paul Cassel, an attorney for the victim’s family, said the judge should reject the agreement “and simply bring the matter to a public trial so that all the facts surrounding the case will be presented in front of the jury in a fair and open forum.” .
The agreement requires company monitors overseeing Boeing probationary periods to remain independent, an aspect of the agreement intended to address concerns from attorneys representing victims’ families.
It also provides for no cap on the compensation Boeing can pay to surviving relatives of victims. Still, lawyers say Boeing should go to trial.
“Boeing is a big company,” said Erin Applebaum, another attorney for family members. “No matter what check they write to the family, it’s not going to bring the family back.”
