Boeing has agreed to pay more than $2.5 billion in connection to a conspiracy to defraud the FAA related to the evaluation of the company’s 737 MAX airplane, according to officials with the United States Department of Justice.
Boeing charged for criminal conspiracy, agrees to pay USD 2.5 million in compensation ANI | Updated: Jan 08, 2021 04:34 IST
Washington [US], January 8 (ANI): The Boeing Company on Thursday (local time) agreed to pay over USD 2.5 million to resolve a criminal charge with the US Department of Justice after being accused of concealing information on two Boeing 737 MAX crashes that resulted in the deaths of 346 passengers.
According to a press release, Boeing entered into a deferred prosecution agreement (DPA) in connection with a criminal information filed on Thursday. The criminal information detailed a conspiracy to defraud the Federal Aviation Administration s Aircraft Evaluation Group (FAA AEG) in connection with the FAA AEG s evaluation of Boeing s 737 MAX airplane.
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Under the terms of the three-year deferred prosecution agreement, Boeing will pay a total criminal monetary amount of over $2.5 billion, composed of a penalty of $243.6 million and a $1.77 billion commitment to provide Boeing’s airline customers for financial losses resulting from the grounding of the 737 Max.
In addition, a $500 million crash-victim beneficiaries fund will be established to compensate the heirs, relatives, and legal beneficiaries of the 346 passengers who died in the two crashes. This is a substantial settlement of a very serious matter, and I firmly believe that entering into this resolution is the right thing for us to do a step that appropriately acknowledges how we fell short of our values and expectations, Boeing President and CEO David Calhoun said in a memo to employees. While we deeply regret the conduct described in the agreement, I am confident that it isn’t reflective of our employees as a whole or the culture or character of our
Boeing Co will pay more than $2.5 billion in fines and compensation after reaching a settlement with the U.S. Department of Justice over two plane crashes that killed a total of 346 people and led to the grounding of its 737 MAX jetliner.