Reuters: Boeing to plead guilty to fraud in US probe of fatal 737 MAX crashes
NEW YORK/WASHINGTON, July 7 (Reuters) - Boeing (BA.N), opens new tab has agreed to plead guilty to a criminal fraud conspiracy charge and pay a fine of $243.6 million to resolve a U.S. Justice Department investigation into two 737 MAX fatal crashes, the government said in a court filing on Sunday.
The plea deal, which requires a judge's approval, would brand the planemaker a convicted felon in connection with crashes in Indonesia and Ethiopia over a five-month period in 2018 and 2019 that killed 346 people.
The settlement drew swift criticism from victims' families who wanted Boeing to face a trial and suffer harsher financial consequences.
The Justice Department's (DOJ) push to charge Boeing has deepened an ongoing crisis engulfing Boeing since a separate January in-flight blowout exposed continuing safety and quality issues at the planemaker.
A guilty plea potentially threatens the company's ability to secure lucrative government contracts with the likes of the U.S. Defense Department and NASA, although it could seek waivers.
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As part of the deal, the planemaker agreed to spend at least $455 million over the next three years to boost safety and compliance programs. Boeing's board will have to meet with relatives of those killed in the MAX crashes, the filing said.
The deal also imposes an independent monitor, who will have to publicly file annual progress reports, to oversee the firm's compliance. Boeing will be on probation during the monitor's three-year term.
Lawyers for some of the victims' families said they planned to press Judge Reed O'Connor, who has been overseeing the case, to reject the deal.