Justice Department Is Said to Offer Boeing Plea Deal over 737 MAX Crashes
The U.S. Justice Department seeks a guilty plea from Boeing over the 737 Max crashes, proposing a $244 million fine, safety investments, and monitoring. Families find the offer insufficient for not admitting fault.
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The U.S. Justice Department is reportedly seeking a guilty plea from Boeing to avoid a criminal trial related to the 737 Max crashes that occurred over five years ago. The proposed deal includes a nearly $244 million fine, safety investments, three years of external monitoring, and a meeting between Boeing's board and crash victims' families. However, some families and their lawyer, Paul G. Cassell, find the offer inadequate as it does not require Boeing to admit fault for the 346 deaths in the crashes. The new agreement would update a 2021 settlement where Boeing paid $500 million to victims' families and over $1.7 billion to customers affected by a global ban on the jet. The Justice Department's move comes before a July 7 deadline for filing criminal charges. Boeing faces pressure to be held accountable without severe damage due to its economic and national security importance. The plea deal also involves appointing a federal monitor, potentially reflecting criticism of the FAA's oversight of Boeing.
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3 commentsSome of these items are profit-driven, e.g. sales reps telling airlines they didn't need to recertify /retrain to get the sale. (One of the new features ended up killing people) Other items were not directly profit driven, lazy engineers that don't care to understand and follow the procedure and guidelines laid out for them. Actual process improvement recommended by an engineer can earn bonuses after being vetted out, but they knew what they were doing was not legit. Certainly shift managers were aware what was going on also.
In purely financial terms, shareholders lost far more value than the fines so what does this do besides absolve the company?
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