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January 7, 2021

Posted  January 7, 2021

The Boeing Company entered into a deferred prosecution agreement regarding charges arising from its misrepresentations to the FAA about components of the Boeing 737 MAX.    As part of the agreement, Boeing will pay over $2.5 billion, consisting of a $243.6 million criminal penalty, $1.77 billion in compensation to 737 Max purchasers, and the establishment of a $500 million crash-victim beneficiaries fund to compensate the heirs, relatives, and legal beneficiaries of the passengers killed on Lion Air Flight 610 and Ethiopian Airlines Flight 302. In addition, Boeing admitted that the company concealed information about changes to the 737 MAX’s Maneuvering Characteristics Augmentation System (MCAS) from the FAA’s Airplane Evaluation Group, resulting in the FAA AEG approving the plane without reference to the MCAS system, depriving pilots of information about the MCAS changes.  Boeing also admitted continuing to conceal information about MCAS from the FAA after the Lion Air crash.  In addition to the monetary penalties, Boeing agreed to strengthen its compliance programs.  DOJ

Tagged in: Criminal Proceedings,