Cash will go to airlines that bought the danger jets, victims fund Share
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Boeing has agreed to settle a criminal charge that it conspired to commit fraud by deceiving federal aviation officials by withholding safety information about its 737 Max control systems.
The US Department of Justice on Thursday announced the deferred prosecution deal, which imposes obligations that Boeing must meet over the next three years in order to avoid future criminal prosecution.
The deal calls for the US aircraft maker to pay over $2.5bn in penalties and compensation payments to companies that bought the planes and to the heirs, relatives, and beneficiaries of the 346 passengers killed in two 737 Max crashes.
08 Jan 2021 / 10:53 H.
(Adds lawmaker criticism)
By David Shepardson, Eric M. Johnson and Tracy Rucinski
WASHINGTON/SEATTLE/CHICAGO, Jan 7 (Reuters) - 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.
The settlement, which allows Boeing to avoid prosecution, includes a fine of $243.6 million, compensation to airlines of $1.77 billion and a $500 million crash-victim fund over fraud conspiracy charges related to the plane s flawed design.
Boeing said it would take a $743.6 million charge against its fourth-quarter 2020 earnings to reflect the deferred prosecution agreement, a form of corporate plea bargain. Boeing had put aside reserves of $1.77 billion in prior quarters to provide for compensation to airlines.
(File photo)
WASHINGTON/SEATTLE/CHICAGO: Boeing Co will pay more than $2.5 billion in fines and compensation after reaching a settlement with the US department of justice over two plane crashes that killed a total of 346 people and led to the grounding of its 737 MAX jetliner.
The settlement, which allows Boeing to avoid prosecution, includes a fine of $243.6 million, compensation to airlines of $1.77 billion and a $500 million crash-victim fund over fraud conspiracy charges related to the plane’s flawed design.
Boeing said it would take a $743.6 million charge against its fourth-quarter 2020 earnings to reflect the deferred prosecution agreement, a form of corporate plea bargain. Boeing had put aside reserves of $1.77 billion in prior quarters to provide for compensation to airlines.
BW Businessworld
Boeing To Pay $2.5 Billion To Settle US Criminal Probe Into 737 MAX Crashes
The $243 million fine, which the Justice Department said was at low end of the sentencing guidelines, represents the amount of money Boeing saved by not implementing full-flight simulator training for the 737 MAX,
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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.
The settlement, which allows Boeing to avoid prosecution, includes a fine of $243.6 million, compensation to airlines of $1.77 billion and a $500 million crash-victim fund over fraud conspiracy charges related to the plane s flawed design.
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