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US finalizes details of Boeing 737 MAX guilty plea deal
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US finalizes details of Boeing 737 MAX guilty plea deal
Jul 24, 2024 4:39 PM

July 24 (Reuters) - The Justice Department said Boeing ( BA )

had agreed to plead guilty to a criminal fraud conspiracy

charge and pay a fine of $243.6 million after the planemaker

breached a 2021 deferred prosecution agreement, according to a

court filing on Wednesday.

Boeing ( BA ) on July 7 agreed in principle to plead guilty to

conspiring to defraud the Federal Aviation Administration after

the government said the planemaker knowingly made false

representations about key software for the 737 MAX.

Families of the 346 people killed in two Boeing 737 MAX

crashes in 2018 and 2019 will be able to file objections before

Judge Reed O'Connor will decide whether to accept the deal and

to determine if Boeing ( BA ) owes restitution of the families of those

killed.

Boeing ( BA ) confirmed it had filed a detailed plea agreement with

the Justice Department. "We will continue to work transparently

with our regulators as we take significant actions across Boeing ( BA )

to further strengthen our safety, quality and compliance

programs," the company said.

As part of the deal, the planemaker agreed to spend at

least $455 million over the next three years to boost safety and

compliance programs, the filing said. Boeing's ( BA ) board will have

to meet with relatives of those killed in the MAX crashes within

four months of sentencing, the filing added.

The deal also imposes an independent monitor, who will

have to publicly file annual progress reports, to oversee the

firm's compliance. Boeing ( BA ) will be on probation during the

monitor's three-year term and it can be extended by a year if

Boeing ( BA ) does not comply with the terms.

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