Boeing agreed to plead guilty to misleading air-safety regulators before two deadly 737 MAX crashes, a stunning concession that would brand the world’s biggest aerospace company a felon. Boeing will formally acknowledge guilt and accept fresh punishment over its dealings with the Federal Aviation Administration before crashes that killed 346 people, reports the Wall Street Journal. In a plea deal to one count of conspiracy to defraud the U.S., prosecutors asked Boeing to pay a second $244 million criminal fine and spend $455 million over three years to improve its compliance and safety programs. Boeing must hire an independent monitor for three years to oversee those improvements. A court must OK the plea agreement.
The plea deal falls short of what families of MAX crash victims wanted. They had asked federal prosecutors to seek a fine as high as about $25 billion, prosecute Boeing at trial, and pursue other charges against the company and executives they believe are responsible for the crashes. Justice Department officials have told the families they faced legal hurdles, including a statute of limitations and a lack of evidence to prove alternative charges such as manslaughter beyond a reasonable doubt. An earlier attempt to prosecute a Boeing employee over the allegations failed at trial. The company faces three years of court-supervised probation during which it could face additional penalties if it fails to comply with the terms. A Justice Department official said the deal holds the company accountable and protects the public. The plea would wipe out a more lenient punishment Boeing received in January 2021, when prosecutors agreed to defer the criminal charge if the company stayed out of trouble.