Boeing is set to plead guilty to a criminal fraud conspiracy charge after the US government found the company broke a reform deal following two deadly crashes of its 737 Max planes that killed 346 people. The Department of Justice (DoJ) announced that Boeing will also pay a fine of $243.6 million.
Families of the victims are upset, calling it a “sweetheart deal” that lets Boeing avoid full responsibility. One family member called it an “atrocious abomination.” The deal still needs approval from a US judge.
By pleading guilty, Boeing avoids a criminal trial, which many families of the victims wanted. Since the two crashes in 2018 and 2019, Boeing has faced intense scrutiny over its safety practices, leading to the global grounding of the 737 Max for over a year.
In 2021, prosecutors accused Boeing of deceiving regulators about the MCAS flight control system linked to the crashes. Boeing agreed to pay penalties and undergo increased monitoring for three years. However, before this period ended, an incident involving an Alaska Airlines Boeing plane raised more concerns about the company’s safety improvements.
The DoJ found Boeing violated the agreement, opening the door for prosecution. Boeing’s guilty plea means it now has a criminal record, which could impact its business, as the government typically bars companies with criminal records from contracts. However, exceptions can be made.
Victims’ families and their lawyers argue the plea deal fails to hold Boeing fully accountable for the deaths. They are urging the judge to reject the plea and set the case for a public trial.
In response to the crashes, Boeing previously agreed to pay $2.5 billion, including a $243 million criminal penalty and $500 million to a victims’ fund. The families were not consulted on this settlement and continue to demand a trial.
Some believe Boeing’s importance as a government contractor influenced the decision to pursue a plea deal instead of a trial. Mark Cohen, a professor who studies corporate punishments, said plea deals can give the government more control over a company compared to typical sentences.
This isn’t Boeing’s first legal issue; the company has paid millions in penalties for various manufacturing problems since 2015. The recent plea deal has reignited debates about how large corporations should be held accountable for their actions.
For more details, you can read the full article on BBC News .
https://www.bbc.com/news/articles/cjjjj85z0lno