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By Reuters | January 8th 2021
Ethiopian Federal policemen stand at the scene of the Ethiopian Airlines Flight ET 302 plane crash, near the town of Bishoftu. [Reuters]
Boeing Co will pay more than Sh273.8 billion ($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 Sh26.7 ($243.6 million), compensation to airlines of Sh186 billion ($1.77 billion) and a Sh54.7 billion ($500 million) crash-victim fund over fraud conspiracy charges related to the plane’s flawed design.
Boeing will pay more than $2.5 billion to settle a criminal charge related to the two 737 Max plane crashes in 2018 and 2019 that killed 346 people.
The Justice Department has announced that it has reached a deferred prosecution agreement with Boeing to resolve a charge of criminal conspiracy to defraud the FAA.
Boeing admits to criminal misconduct for misleading regulators about the safety of the troubled jetliner, but the airplane manufacturer is not pleading guilty to the charge. If Boeing complies with the terms of the settlement, in three years the government will drop the criminal charge. That s important for Boeing, a huge federal defense contractor, because a criminal conviction would prohibit the company from getting future government contacts.
January 7th, 2021 in Podcast. Closed
Ethiopian officials deliver the Black Box for Ethiopian Airlines Flight 302 to the headquarters of France s BEA air accident investigation agency in Le Bourget, France on March 14, 2019. As NPR reports the families of the passengers who died in the crash will be compensated from a fund of $500 million. (Reuters photo)
Boeing To Pay $2.5 Billion Over 737 Max Fraud, Faces No Other Charges
Boeing will pay more than $2.5 billion to settle criminal charges that it repeatedly concealed and lied about the 737 Max’s engineering problems that led to two catastrophic crashes claiming hundreds of lives.
The company admitted to one count of conspiracy to defraud the United States as part of the deferred prosecution agreement announced on Thursday and will face no further charges from the U.S. Department of Justice.