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Boeing Reaches Deal with DOJ to Avoid Prosecution Over 737 Max Crashes

Boeing Reaches Deal with DOJ to Avoid Prosecution Over 737 Max Crashes

Settlement Contains $2.5 Billion Settlement and Compliance Reforms

The U.S. Division of Justice (DOJ) has reached a deferred prosecution settlement (DPA) with Boeing, permitting the aerospace large to keep away from felony fees associated to the 2 deadly 737 Max crashes that killed 346 individuals.

Beneath the phrases of the deal, Boeing pays a $2.5 billion settlement, which incorporates:

  • $243.6 million in fines
  • $1.77 billion in compensation to airways affected by the 737 Max grounding
  • $500 million for a victims’ compensation fund

Moreover, Boeing should strengthen its compliance applications and undergo unbiased oversight for 3 years. If the corporate meets all necessities, the DOJ will drop a felony cost of conspiracy to defraud the Federal Aviation Administration (FAA).

Background: The 737 Max Disaster

The 737 Max was grounded worldwide in 2019 after two crashes—Lion Air Flight 610 (October 2018) and Ethiopian Airways Flight 302 (March 2019)—have been linked to a defective flight management system, the Maneuvering Traits Augmentation System (MCAS). Investigations revealed that Boeing misled regulators about MCAS and did not adequately prepare pilots on the system.

Combined Reactions to the Deal

  • Victims’ households have criticized the settlement as insufficient, arguing that Boeing executives ought to face felony accountability.
  • Authorized consultants be aware that deferred prosecution agreements are widespread in company circumstances however query whether or not the penalties are enough.
  • Boeing acknowledged that the decision acknowledges the corporate’s “accountability and reaffirms its dedication to transparency and security.”

What’s Subsequent?

Whereas the deal permits Boeing to keep away from a trial, the corporate nonetheless faces ongoing scrutiny from Congress, the FAA, and civil lawsuits from victims’ households. The 737 Max was recertified to fly in late 2020, however Boeing’s popularity and monetary well being proceed to be examined.

For now, the DOJ’s choice closes one chapter of the 737 Max saga—however the debate over company accountability in aviation security is way from over.

Keep tuned for additional updates.