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Boeing has agreed to plead guilty to a felony charge of conspiracy to defraud the federal government in connection with the 2018 and 2019 crashes involving its 737 Max aircraft. This agreement, disclosed in a recent court filing, includes Boeing paying a fine of $487.2 million, the maximum allowable by law. Additionally, Boeing will allocate at least $455 million over the next three years to enhance its compliance and safety programs.
Under the terms, Boeing will undergo a three-year probation overseen by the Federal District Court for the Northern District of Texas. An independent compliance monitor, appointed by the Justice Department, will ensure the implementation and adherence to safety protocols, reporting annually to the government. Any violations of these conditions will incur further penalties. Furthermore, Boeing's board of directors must meet with families of crash victims as part of the probationary terms.
This guilty plea is notable as Boeing has not faced a federal felony conviction in decades. The charge of conspiracy to defraud the federal government, described by the Department of Justice as a serious offense, stems from violations of a prior agreement with the DOJ in 2021 following the fatal crashes. The Biden administration has prioritized holding corporations like Boeing accountable for fulfilling such agreements.
A joint filing by the DOJ and Boeing outlines the preliminary agreement, with a formal plea hearing to follow after the court receives the finalized agreement in the coming weeks. During this hearing, families of crash victims will have the opportunity to address the court.
In summary, Boeing's decision to plead guilty marks a significant legal development in response to the 737 Max tragedies, emphasizing corporate accountability and commitment to enhanced safety measures.
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