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The Department of Justice has struck a deal with Boeing (BA-0.01%), enabling the company to avoid prosecution for a pair of crashes involving its 737 Max passenger jet that killed 346 people in Indonesia and Ethiopia.
The Associated Press reported that Boeing would pay out $1.1 billion in fines and safety improvements, while setting aside $445 million for the crash victims’ families. The DOJ would then dismiss the case, after alleging that Boeing misled U.S. regulators at the Federal Aviation Administration about the plane’s safety features. The “agreement in principle” still needs to be finalized.
The agreement compels Boeing to maintain an anti-fraud compliance and ethics program, per the Wall Street Journal. An independent compliance consultant would ensure improvements are being made and reported to the federal government.
“Ultimately, in applying the facts, the law, and Department policy, we are confident that this resolution is the most just outcome with practical benefits,” a DOJ spokesperson said in a statement. “Nothing will diminish the victims’ losses, but this resolution holds Boeing financially accountable, provides finality and compensation for the families and makes an impact for the safety of future air travelers.”
The families of the victims sought a public trial to prosecute executives and inflict steep financial penalties on Boeing. The trial had been set to start on June 23, “Although the DOJ proposed a fine and financial restitution to the victims’ families, the families that I represent contend that it is more important for Boeing to be held accountable to the flying public,” Paul Cassell, an attorney representing the families, said in a statement earlier in the week.
It’s not the first settlement involving Boeing and the 737 Max. In January 2021, Boeing agreed to pay more than $2.5 billion to settle charges that it defrauded the Federal Aviation Administration’s Aircraft Evaluation Group about the aircraft’s Maneuvering Characteristics Augmentation System, which impacted the flight control system of the Boeing 737 MAX.