Boeing has signed a deal with the Department of Justice (DOJ) allowing it to avoid criminal prosecution for two 737 MAX crashes. The $1.1 billion deal includes the company’s admission that it sought to defraud the Federal Aviation Administration (FAA).
The agreement, signed on May 29 and revealed in a June 4 filing, states that Boeing will “pay victim compensation to the heirs, relatives, and/or legal beneficiaries of the crash victims of Lion Air Flight 610 and Ethiopian Airlines Flight 302 in the amount of $444.5 million.” Boeing will further pay $487.2 million in fines and invest $455 million in company “compliance, quality, and safety programs.”
Half of the fine has already been paid, the agreement notes.
Boeing must also engage with an Independent Compliance Consultant and conduct an internal review of its policies and procedures.
In 2021, Boeing was charged with conspiracy to defraud the FAA. The DOJ argued at the time that the company engaged in deceitful behavior regarding an aircraft part affecting the flight control system. Airplane manuals subsequently failed to include information about the Maneuvering Characteristics Augmentation System (MCAS).
“The tragic crashes of Lion Air Flight 610 and Ethiopian Airlines Flight 302 exposed fraudulent and deceptive conduct by employees of one of the world’s leading commercial airplane manufacturers,” then-Acting Assistant Attorney General David P. Burns of the Justice Department’s Criminal Division said at the time. “Boeing’s employees chose the path of profit over candor by concealing material information from the FAA concerning the operation of its 737 Max airplane and engaging in an effort to cover up their deception.”
