2 days ago
Boeing enters into Non-Prosecution Agreement with DOJ
According to a regulatory filing, on May 29, 2025, Boeing (BA) entered into a Non-Prosecution Agreement with the U.S. Department of Justice that, subject to court proceedings, resolves matters relating to the Department's determination that the company did not fulfill its obligations under the previously-disclosed Deferred Prosecution Agreement entered into by the company and the Department on January 6, 2021. Pursuant to the NPA, the company is subject to a $487.2M overall criminal monetary penalty, $243.6M of which was paid in 2021 pursuant to the DPA and the remaining $243.6M of which was included in amounts expensed by the company in 2024 pursuant to the proposed plea agreement between the company and the Department filed with the U.S. District Court for the Northern District of Texas on July 24, 2024. The NPA also requires the Company, among other things, to (1) pay $444.5M in additional compensation to the heirs and/or beneficiaries of those who died in the Lion Air Flight 610 and Ethiopian Airlines Flight 302 accidents, (2) to invest $455M in the Company's compliance, safety, and quality programs through the end of the term of the NPA, (3) to retain an independent compliance consultant to assess the Company's progress regarding remediation and implementation of the compliance measures described in the NPA and the attachments thereto, (4) to continue to implement a compliance program, and (5) to continue to undertake a review of its internal controls, policies and procedures. The Department agreed that it will not further criminally prosecute the Company for any conduct described in the NPA provided that the Company performs all of its obligations under the NPA, including those described above. The NPA has a term of two years from the date on which the Company retains the independent compliance consultant, unless the NPA is extended or terminated earlier as described therein.
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