Washington (AP) – The Justice Department has reached an agreement with Boeing, which may help the aerospace giant avoid criminal prosecution related to allegations of misleading US regulators about the 737 Max Jet Liner. This comes in the wake of two fatal crashes that resulted in the deaths of 346 individuals, as indicated in court documents filed on Friday.
Under the “in principle contract,” which is yet to be finalized, Boeing will pay or invest over $1.1 billion, including an extra $445 million to the families of the crash victims, according to the Justice Department.
In exchange, the department has agreed to dismiss the fraud charge against Boeing, permitting the manufacturer to evade criminal convictions that could jeopardize its standing as a federal contractor, as per legal experts.
“Ultimately, we believe this resolution is the most legitimate outcome, balancing practical interests with the application of facts, laws, and departmental policies,” stated a spokesman for the Department of Justice.
“While this does not lessen the victims’ losses, this resolution will make Boeing financially accountable, offer closure and compensation to families, and influence the safety of future air travel.”
Boeing declined to make a statement on Friday.
Families of the deceased passengers from the crashes that occurred off the coasts of Indonesia and Ethiopia within a span of five months in 2018 and 2019 have sought public trials, prosecution of former company officials, and more severe financial penalties for Boeing. The Justice Department acknowledged that the families of the victims have a range of perspectives on the proposed settlement.
“This type of non-prosecution agreement is unprecedented and fundamentally inappropriate given the deadliest corporate crimes in US history,” remarked Paul Cassel, a lawyer representing many of the families in ongoing litigation. “My family opposes it and intends to convince the court to reject it.”
Javier de Luis, whose sister Graziera lost her life in the Ethiopian crash, expressed that the Justice Department is abandoning its responsibility to seek justice for the victims of the 737 Max tragedy.
“The message being conveyed to corporations nationwide through this action is troubling; it suggests that safety for customers is not a priority,” he stated. “Even if lives are lost, they can simply pay a minimal fine and move on.”
Boeing was accused of misleading the Federal Aviation Administration regarding critical aspects prior to the certification of the planes for flight. The company failed to inform airlines and pilots about a new software system known as MCAS, which would lower the plane’s nose without pilot input if a sensor detected a potential aerodynamic stall.
The Max jets crashed due to erroneous sensor readings pushing the nose down, resulting in the pilots losing control. Following the second crash, Max jets were grounded globally, and the MCAS system was redesigned to utilize signals from two sensors instead of just one.
In 2021, the Justice Department had misled FAA regulators regarding software that was not present in the older 737 models, questioning whether pilots needed to operate the aircraft safely. At that time, the department agreed not to prosecute Boeing but required compliance with anti-fraud regulations for three years, contingent upon a $2.5 billion settlement that included a $243.6 million fine.
However, federal prosecutors revealed last year that Boeing failed to comply with the terms of the 2021 agreement by not implementing the required changes designed to detect and prevent violations of federal anti-fraud laws. Last July, Boeing opted to plead guilty instead of undergoing potentially lengthy public trials, which would have resulted in felony fraud charges.
In December, US District Judge Reed O'Connor rejected the plea deal in Fort Worth. The judges considered whether diversity, inclusion, equity, or Day government and Boeing policies could influence the selection of monitors to ensure Boeing complies with the contract.
The plea agreement called for an independent monitor to supervise Boeing’s safety and quality practices for a duration of three years. Under the contract announced on Friday, Boeing will be required to engage “independent compliance consultants” who will provide recommendations for “further improvements” and report their findings to the government.
Source: apnews.com