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Boeing to Pay $940 Million and Plead Guilty in 737 Max Crash Case
Company to Improve Safety Measures and Face Three Years of Probation
According to Courthouse News Service, Boeing will pay over $940 million and plead guilty to a conspiracy charge related to the two 737 Max crashes that killed 346 people. The company admitted to deceiving the Federal Aviation Administration (FAA) about its safety software leading to the tragic 737 Max crash. The plea deal announced on Wednesday includes a $243.6 million fine matching the amount Boeing had already paid under a previous agreement in 2021. This new penalty follows accusations that Boeing failed to follow safety and ethics rules designed to prevent fraud and ensure compliance. Prosecutors revealed that Boeing‘s board would also pay an additional $455 million to improve safety and compliance. The company will be on probation for three years and must hire an independent monitor to review its safety practices.
This monitor will report to the government and publicly share a summary of their findings. The 737 Max a model Boeing introduced with upgraded engines was grounded in March 2019 after crashes involving Lion Air Flight 610 and Ethiopian Airlines Flight 302. The FAA allowed the plane to return to service in November 2020. However, in May 2024 Boeing faced new scrutiny after a door issue on a 737 Max 9 led to an emergency landing. As part of the deal Boeing’s board will meet with the families of the crash victims within four months of the sentencing. Despite this the families criticized the plea deal calling it a “sweetheart” arrangement and pledging to challenge it in court.
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737 Max Crash Tragedy: Boeing’s $455M Fine and Probation a Result of Guilty Plea (PHOTO: The New York Times)
What to Know About Safety, Probation, and Ongoing Legal Risks
Furthermore, the plea agreement does not prevent Boeing from facing other legal actions or investigations. The company retains the right to contest any claims for restitution from the victims’ families though the government can support these claims. So far, only one criminal case related to the 737 Max crash has gone to trial. Former Boeing chief test pilot Mark Forkner who was accused of lying about the aircraft’s safety software was acquitted in 2022. The case highlighted ongoing concerns about Boeing’s safety practices and transparency.
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