Boeing is seeking to take a plea deal that families of Boeing crash victims oppose. Image source: AceYYC, via: Wikimedia Commons
Aerospace company Boeing has agreed to plead guilty to a criminal fraud conspiracy charge in an investigation of two 737 MAX fatal crashes.
The plea will brand the company with a felony and will have the company pay a fine of $243.6 million USD ($360.73 million AUD).
The charges relate to two airplane crashes in 2018 and 2019 that occurred over a five-month period. The 737 MAX planes crashed in Indonesia and Ethiopia.
Boeing had initially been charged in 2021 with deceiving Federal Aviation Administration (FAA) regulators regarding the software on these planes, found to be a faulty sensor.
The FAA grounded all Boeing planes with this software for 20 months, costing the company $20 Billion USD ($29.582 billion AUD).
Boeing was not prosecuted at this time but had to pay a further fine of $243.6 million USD ($360.26 million AUD).
The company was also required to comply with anti-fraud laws for three years, and to overhaul compliance practices to prevent violation of US fraud laws.
The continued safety issues with Boeing aircraft were further highlighted when, earlier this year, a panel covering an emergency exit blew off the side of one of their 737 MAX planes over Oregon, USA.
While this plane was able to land safely, without serious injury to passengers or crew, it highlighted the need for further scrutiny of Boeing’s safety practices. A new investigation was opened into Boeing.
Whistleblowers have highlighted significant concerns with Boeing’s safety practices. Two of these whistleblowers, Joshua Dean and John Barnett, died during the legal proceedings against Boeing.
Prosecutors found during the case that Boeing had breached the terms of their 2021 agreement. Boeing initially told prosecutors it “disagreed with their findings” but would “honour the terms” of the settlement.
The presiding judge, Reed O’Connor, has criticised Boeing’s “egregious criminal conduct”, stating once in February 2023 that “Boeing’s crime may properly be considered the deadliest corporate crime in US history”.
Judge O’Connor could accept the plea deal or reject it, which could lead to further negotiations and a longer trial. He can also decide on whether Boeing will have to pay additional restitution to the families of the crash victims.
Families of the crash victims have announced they will challenge the deal in court, calling it a “slap on the wrist”.
Paul Cassell, a lawyer for some of the families, stated “this sweetheart deal fails to recognise that because of Boeing’s conspiracy, 346 people died”.
“Through crafty lawyering between Boeing and DOJ, the deadly consequences of Boeing’s crime are being hidden.”
If the plea deal is accepted, the criminal conviction could hamper Boeing’s status as a federal defence contractor.
