Boeing working with DOJ on revised plea deal
3/4/2025 6:13
Boeing is in
discussions with the U.S. Department of Justice to reach a
revised plea agreement in a criminal fraud case stemming from
the planemaker's alleged misrepresentations to regulators about
a key system on the 737 MAX, company CEO Kelly Ortberg said on
Wednesday.
Ortberg said at a Senate hearing Boeing is in discussions
with the Justice Department to come up with an alternate
agreement after the initial deal was not accepted by a judge.
"I want this resolved as fast as anybody," Ortberg said.
"Hopefully, we'll have a new agreement here soon."
In July, Boeing agreed to plead guilty to a criminal fraud
conspiracy charge after two fatal 737 MAX crashes and to pay a
fine of up to $487.2 million. A judge set a June 23 trial date
if no final agreement is reached.
Boeing's plea deal struck last year included spending $455
million to improve safety and compliance practices over three
years of court-supervised probation as well as supervision by an
independent monitor for three years.
Relatives of the victims of the two 737 MAX crashes,
which occurred in 2018 and 2019 and killed 346 people, have
called the plea agreement a "sweetheart" deal that failed to
adequately hold Boeing accountable for the deaths of their loved
ones.
An accepted plea deal would brand Boeing a convicted
felon for conspiring to defraud the Federal Aviation
Administration about problematic software affecting the flight
control systems in the planes that crashed during the MAX's
certification.
In May, the DOJ found Boeing had violated a 2021
agreement that had shielded it from prosecution over the
crashes. Prosecutors then decided to criminally charge Boeing
and negotiate the current plea deal.
The decision followed the January 2024 in-flight blowout
of a door panel on a new Alaska Airlines' 737 MAX 9.
Senator Maria Cantwell asked about a report that Boeing does
not want to face oversight of an independent corporate monitor
as part of a new plea deal.
"I don't want to prejudge what the outcome of those
discussions is going to be. I don't personally have a problem,
no," Ortberg said.
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