Boeing Agrees to Plead Guilty to Criminal Fraud Charge

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Boeing has reached an agreement to plead guilty to a criminal fraud conspiracy charge in the United States, following allegations that it violated terms set after fatal crashes involving its 737 Max planes claimed 346 lives. The U.S. Department of Justice announced that Boeing will pay a criminal fine of $243.6 million (£190 million) as part of the settlement, pending approval by a U.S. judge.

The plea deal allows Boeing to avoid a criminal trial, a move criticized by families of crash victims who see it as a way for the company to evade full accountability. The crashes in 2018 and 2019 led to the worldwide grounding of the 737 Max aircraft for over a year.

Initially charged with conspiracy to defraud regulators over its MCAS flight control system, Boeing faced scrutiny over progress in safety reforms. Violations found in 2021 prompted the possibility of prosecution, culminating in the recent guilty plea.

Despite the plea, Boeing’s criminal record may impact its status as a major U.S. military contractor and one of the largest commercial jet manufacturers globally. Critics, including legal representatives of victims’ families, argue that the plea deal minimizes the severity of Boeing’s actions and the loss of life involved.

The settlement includes a $2.5 billion payment by Boeing to resolve legal issues, including contributions to a victims’ fund, though dissatisfaction persists among families who desired a trial to publicly address the circumstances of the crashes.