“The misleading statements, half-truths and omissions communicated by Boeing employees to the FAA hamper the government’s ability to ensure the safety of the flying public,” U.S. Attorney Erin Nealy Cox told the Northern District of Texas. “This case sends a clear message: the Department of Justice will hold manufacturers like Boeing accountable to fraudulent regulators – especially in industries where interests are so high.”
According to government supporters against the company, at least two Boeing employees, who have not been identified, have been involved in the fraud since late 2016, in the final stages of approval of the aircraft until the end of 2018, when the aircraft was already in use. and after the first accident occurred.
According to the submission, at least one of the two employees left Boeing in July 2018 to work for an airline. The employment status of the other employee in the employment was not specified. Boeing has agreed to cooperate with any individual prosecutions arising out of this case.
The settlement includes a criminal fine of $ 243.6 million, compensation payments of $ 1.77 billion to Boeing’s airline customers and an additional $ 500 million to a fund to compensate relatives of accident victims. Boeing had previously set aside money to pay airlines and $ 100 million for victims’ families. It is said that it will reimburse an additional amount of $ 743.6 million against the earnings due to the settlement.
Under the agreement, the Department of Justice will adjourn any criminal prosecution of Boeing for three years and charges will be dismissed if he no longer sees misconduct by the company.
“I firmly believe that the adoption of this resolution is the right thing for us to do – a step that properly acknowledges how we have fallen short of our values and expectations,” said Boeing CEO Dave Calhoun. “This resolution is a serious reminder to all of us of how critical our commitment to transparency to regulators is, and the consequences our company may face if any of us do not live up to expectations.”
But several relatives of the accident victims attacked the settlement as a ‘slap on the wrist’.
“This is a Boeing protection agreement,” said Michael Stumo, father of Samya Rose Stumo. He died during the second crash in March 2019. He said the families of victims of the crash had asked the Justince department not to reach a settlement with Boeing. . “The Boeing people who committed fraudulent acts will not be held liable. The government continues to protect them, despite acknowledging their criminal acts. The amount of the settlement dollar is only errors in the Boeing corporate “This is a false justice agreed upon by intruders while excluding the victims.” families.
“May it serve as a reminder that the current leadership of Boeing and the FAA is not fit to be entrusted with human life,” said Zipporah Kuria, a British resident who lost her father during the second crash. . “Their priority is corporate interest over human life.” She said the settlement “does not even scratch the surface of justice.”
According to experts, lost revenue from canceled, delayed or renegotiated sales could cost tens of billions more. This could make the 737 Max debacle one of the most costly corporate mistakes of all time, in terms of financial costs and loss of life.