Published January 9, 2021, 5:30 AM
NEW YORK (AFP) – US prosecutors on Thursday hit Boeing with $2.5 billion in fines, settling a criminal charge over claims the company defrauded regulators overseeing the 737 MAX, which was grounded worldwide following two deadly crashes.
The Department of Justice (DOJ) said Boeing reached a deferred prosecution agreement related to the company’s pronouncements to regulators during the certification of the MAX, which was taken out of service for 20 months after the crashes and only recently cleared to return to the skies.
(FILES) In this file photo taken on September 30, 2020 a Boeing 737 MAX airliner piloted by Federal Aviation Administration (FAA) Administrator Steve Dickson lands following an evaluation flight at Boeing Field the in Seattle, Washington. – US prosecutors hit Boeing with a $2.5 billion fine to settle charges the company defrauded regulators over the 737 MAX, the Justice Department announced January 7, 2021. (Photo by Jason
737 Max: Boeing vermeidet durch Millionenzahlung US-Strafprozess heise.de - get the latest breaking news, showbiz & celebrity photos, sport news & rumours, viral videos and top stories from heise.de Daily Mail and Mail on Sunday newspapers.
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Eight of about a dozen grounded American Airlines Boeing 737 Max 8 aircraft were parked on a remote taxiway at Roswell International Air Center in Roswell, New Mexico, Wednesday, Sept. 4, 2019. (Tom Fox/The Dallas Morning News/TNS)
Boeing agrees to pay $2.5B+ to settle criminal fraud charges over 737 Max
Boeing has agreed with the U.S. government to pay just over $2.5 billion to defer prosecution and resolve a charge of “criminal misconduct” in its certification of the 737 Max, the Department of Justice announced Thursday.
Of that amount, only $243.6 million, less than 10%, is a fine for the criminal conduct, “which reflects a fine at the low end” of the sentencing guidelines, the court agreement states.
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As part of the settlement, Boeing must make compensation payments of $1.77 billion to 737 Max airline customers.
Boeing will pay more than $2.5 billion to settle federal criminal fraud charges that it deceived the FAA in connection with the agency s evaluation of the 737 Max aircraft.
Travel advisors must decide whether to handle bookings on Max-operated flights differently than they handle bookings for all other flights Continue Reading
The aerospace giant will pay a criminal fine of $243.6 million, make compensation payments to 737 Max airline customers of $1.77 billion and establish a $500 million fund for relatives and heirs of the 346 people who died in the 2018 and 2019 Max crashes of Lion Air Flight 610 and Ethiopian Airlines Flight 302.