The Boeing Company (NYSE:BA) and the Department of Justice (DOJ) on Friday reached an agreement, allowing the company to avoid prosecution over the deadly 737 Max crashes in 2018 and 2019. The deal also ensured that the plane-maker would not be labeled a felon. The trial was scheduled for late next month.
Under the agreement, The Boeing Company is required to pay or invest over $1.1 billion in fines and compensation to the victims’ families. The company must also improve its compliance, safety, and quality programs.
According to reports, officials from the DOJ met with families of the crash victims last week to discuss the deal. In a court filing on Friday, the DOJ said the government believes this is a fair and just resolution serving public interest.
“Boeing must continue to improve the effectiveness of its anti-fraud compliance and ethics program and retain an independent compliance consultant. We are confident that this resolution is the most just outcome with practical benefits.”
The Boeing Company had been pushing to put the two crashes, a Lion Air flight in October 2018 and an Ethiopian Airlines flight in March 2019, behind it. It reached a settlement in 2021 that shielded it for three years from prosecution for a fraud charge over the aircraft’s development.
These crashes sparked a prolonged period of crisis for The Boeing Company that saw a global grounding of its planes, several investigations, and a major hit to its reputation, which cost the company billions of dollars.
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