The Justice Department has reached a contract with Boeing that can avoid criminal prosecution that allegedly mislead U.S. regulators over the largest jetliner of the 737 before the two planes crashed and killed 346 people, according to court documents filed Friday.
Under the “in principle contract” that still needs to be finalized, Boeing will pay and invest more than $1.1 billion, including an additional $445 million, to the families of victims who fell crashed, the Justice Department said. In return, the department dismisses criminal fraud charges against the aircraft manufacturer.
“In the end, we believe that this resolution is the most legitimate result with practical interests in applying facts, laws and departmental policies,” a spokesman for the Department of Justice said in a statement.
“There is nothing to reduce the losses of victims, but this resolution will hold Boeing economically accountable, provide finality and compensation to families, and impact the safety of future air travel.”
Many parents of passengers who died in crash crashes in less than five months off Indonesia and Ethiopia in 2018 and 2019 have spent years seeking public trials, prosecution of former company officials, and more serious financial punishments for Boeing.
“The DOJ has proposed fines and financial reparations to the victim’s families, but the families I represent argue that it is more important for Boeing to be held responsible for the public flying,” Paul Cassell, a lawyer for many of the long-term cases, said in a statement earlier this week.
Boeing was accused of misleading the Federal Aviation Administration of its biggest aspect before the agency certified the plane. Boeing did not inform airlines and pilots about the new software system called MCAS. This will lower the plane’s nose without input from the pilot if the sensor detects that the plane could enter an aerodynamic stall.
The maximum plane crashed as a false reading from the sensor pushed its nose down and the pilot couldn’t regain control. After the second crash, Max Jets were grounded all over the world, with the MCA redesigning the MCAS to become powerful, using signals from not only one but two sensors.
Boeing avoided prosecution in 2021 by reaching a $2.5 billion settlement with the Department of Justice, including a previous $243.6 million fine.
A year ago, prosecutors said Boeing violated the terms of the 2021 contract by failing to make the promised changes to detect and prevent violations of the federal anti-combustion laws. Boeing agreed last July to plead guilty to felony fraud charges, rather than enduring a potentially long public trial.
However, in December, Fort Worth US District Judge Reed O’Connor refused the plea deal. The judge said government and Boeing’s diversity, inclusion and equity (DEI) policies could be the factor in choosing a monitor to oversee Boeing’s contract compliance.