Hearing Scheduled Over Boeing Plea Deal
By David Shepardson
U.S. District Judge Reed O’Connor announced a hearing on October 11 to review objections raised by relatives of victims from two Boeing 737 MAX crashes regarding the company’s guilty plea to criminal fraud conspiracy.
On July 24, Boeing agreed to plead guilty to defrauding the Federal Aviation Administration and to pay up to $487 million after violating a 2021 deferred prosecution agreement.
Families of the 346 victims from the 2018 and 2019 incidents contend the penalty is inadequate and have lodged other objections. Additionally, Polish airline LOT filed objections, claiming it incurred $250 million in damages and deserves rights similar to those of the victims’ families.
The Justice Department supports Boeing’s plea deal, which aims to hold the company accountable while serving the public interest. Family members referenced O’Connor’s previous statement regarding Boeing’s actions as potentially the worst corporate crime in U.S. history.
The Justice Department’s findings indicated Boeing allowed risky practices in its manufacturing and failed to maintain accurate aircraft records leading up to the agreement’s expiration.
The plea deal mandates Boeing invest $455 million to improve compliance, safety, and quality programs over three years of court-supervised probation, along with an independent monitor.
O’Connor may require Boeing to provide restitution to victims’ families, possibly exceeding previous settlements.
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