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Boeing to pay $1.1 billion as part of deal to settle 737 Max crash cases with DOJ

Boeing to pay $1.1 billion as part of deal to settle 737 Max crash cases with DOJ

CNN23-05-2025
The US Department of Justice said Friday that it struck a deal with aircraft maker Boeing to avoid prosecution of the company over two fatal crashes of the 737 Max, according to a Friday court filing in the case.
The filing makes official a proposal publicly reported last week, though a judge will still have to approve the deal for it to go into effect.
As part of proposed deal, called a non-prosecution agreement, Boeing will pay more than $1.1 billion in fines, commitments to strengthen safety and compliance programs, and payments for the crash victims' families, a DOJ spokesperson said.
'The Agreement guarantees further accountability and substantial benefits from Boeing immediately, while avoiding the uncertainty and litigation risk presented by proceeding to trial,' the department wrote in a court filing.
If approved, the agreement will end a long and tumultuous case against the aviation company. Boeing first faced fraud charges over its alleged deception to the Federal Aviation Administration during the initial certification process for the 737 Max jets.
The DOJ and Boeing then entered a 'deferred prosecution' settlement on the same charges that could have relieved it of ever facing criminal prosecution. But in January 2024, days before a three-year probationary period on that original agreement ended, a door plug blew out of the side of a 737 Max flown by Alaska Air.
While no one was killed in that incident, it opened the door for the Justice Department to again resume prosecution of the company.
Boeing agreed to plead guilty to the charges in July, but the federal judge hearing the case rejected the guilty plea, not because it was too lenient, or too harsh, but because he had problems with how the independent monitor would be selected.
Attorneys for the victims' families spoke out against the proposed agreement, with one saying last week that the deal is 'morally repugnant. It is a slap on the wrist. And it feels like a bribe.'
A DOJ spokesperson said Friday that they 'met extensively with the crash victims' families' when considering the deal, and that 'they hold a broad set of views regarding the resolution, ranging from support to disagreement.'
'Nothing will diminish the victims' losses, but this resolution holds Boeing financially accountable, provides finality and compensation for the families and makes an impact for the safety of future air travelers,' the spokesperson said.
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