The Justice Department has reached a deal with Boeing that will allow the airplane manufacturer to avoid criminal prosecution over accusations that it misled US regulators about the 737 Max jetliner before two of the planes crashed and killed 346 people, according to court papers filed Friday. Under the "agreement in principle" that still needs to be finalized, Boeing would pay and invest more than $1.1 billion, including an additional $445 million for the crash victims' families, the Justice Department said. In return, the department would dismiss the fraud charge in the criminal case against the aircraft manufacturer, the AP reports.
A Justice Department statement called the resolution "the most just outcome with practical benefits," saying it holds Boeing accountable, "provides finality and compensation for the families and makes an impact for the safety of future air travelers." Many relatives of the passengers who died in the crashes, which took place off the coast of Indonesia and in Ethiopia in 2018 and 2019, have spent years pushing for a public trial, the prosecution of former company officials, and more severe financial punishment for Boeing. "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 for many of the families, said in a statement earlier this week.
Boeing avoided prosecution in 2021 by reaching a $2.5 billion settlement with the Justice Department that included a previous $243.6 million fine. A year ago, prosecutors said Boeing violated the terms of the 2021 agreement by failing to make promised changes to detect and prevent violations of federal anti-fraud laws. Boeing agreed last July to plead guilty to the felony fraud charge instead of enduring a potentially lengthy public trial. But in December, a judge rejected the plea deal.
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