WASHINGTON: Boeing has agreed to plead guilty to a criminal fraud conspiracy charge to resolve a U.S. Justice Department investigation linked to two 7...
: Boeing has agreed to plead guilty to a criminal fraud conspiracy charge to resolve a U.S. Justice Department investigation linked to two 737 MAX fatal crashes, a government official said on Sunday.
A guilty plea potentially threatens the company’s ability to secure lucrative government contracts with the likes of the U.S. Defense Department and NASA, although it could seek waivers. Boeing became exposed to criminal prosecution after the Justice Department in May found the company violated a 2021 settlement involving the fatal crashes.
After being briefed last week on the DOJ’s offer, a lawyer for some of the families criticized it as a “sweetheart deal”. They have vowed to oppose the deal in court. Boeing is pleading guilty to making knowingly false representations to the Federal Aviation Administration about having expanded a key software feature used on the MAX to operate at low speeds. The new software saved Boeing money by requiring less intensive training for pilots.
The agreement does not shield any executives, the DOJ official said, though charges against individuals are seen as unlikely due to the statute of limitations.
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