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Boeing to Pay $1.1B Instead of Going to Trial Over 737 Max Crashes
Boeing signed a non-prosecution agreement to avoid federal prosecution stemming from deadly 737 Max crashes in 2018 and 2019.
The jet maker will pay $1.1 billion as part of the deal, which included investments in compliance programs and payouts to the relatives of those who died in the crashes.
Boeing admitted to conspiracy to defraud the FAA's Aircraft Evaluation (BA) has agreed to pay $1.1 billion in fines to avoid federal prosecution related to the pair of 737 Max crashes in 2018 and 2019 that killed more than 300 people.
The jet maker signed a non-prosecution agreement requiring it to invest $455 million in compliance and safety programs and pay out an additional $444.5 million in compensation to the families of those who died in the crashes. Boeing is also responsible for a criminal monetary penalty of $487.2 million, half of which the company paid in 2021, which leaves $243.6 million outstanding.
Boeing admitted as part of the agreement to a conspiracy to defraud the Federal Aviation Administration's Aircraft Evaluation Group, which had been evaluating the 737 Max's flight control system in the years preceding the crashes. Going forward, Boeing agreed to report to an independent compliance consultant, who will in turn report to the government.
Granting Boeing a non-prosecution agreement represents a shift in approach by the Department of Justice under the Trump administration. The case had been scheduled to go to trial on June 23, but the DOJ last month reportedly told relatives of those killed in the Boeing crashes that the government could lose, which would prevent the department from securing additional relief. Lawyers for the families said they plan to formally object to the move.
Shares of Boeing were little changed in early trading Thursday. The stock has gained 20% in 2025 so far.
Read the original article on Investopedia
