Boeing Settles with DOJ for $1.1 Billion Over 737 Max Crashes

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Boeing Settles with DOJ for $1.1 Billion Over 737 Max
A logo of US aircraft maker Boeing is displayed during the International Paris Air Show at the ParisLe Bourget Airport, on June 20, 2023 GEOFFROY VAN DER HASSELT/AFP via Getty Images/Getty Images

Boeing has agreed to pay $1.1 billion to settle charges with the US Department of Justice related to two fatal crashes involving its 737 Max planes.

The deal helps the company avoid criminal prosecution for misleading regulators before the accidents that claimed 346 lives.

The settlement, filed in court Friday, includes $445 million set aside for the families of the crash victims, CBS News said.

The rest of the money will go toward improving Boeing's safety, quality, and compliance systems, the DOJ said.

"This resolution holds Boeing financially accountable, provides finality and compensation for the families, and makes an impact for the safety of future air travelers," the Justice Department said in a statement.

The crashes — Lion Air Flight 610 in 2018 and Ethiopian Airlines Flight 302 in 2019 — raised global alarm about Boeing's safety practices.

The DOJ accused the company of deceiving the Federal Aviation Administration during the certification of the 737 Max.

The deal is known as a non-prosecution agreement. If approved by a judge, it will officially end years of legal uncertainty for Boeing. Boeing has not issued any public statement regarding its $1.1 billion settlement.

Families Slam Boeing Deal, Call for Public Trial

However, the settlement has drawn sharp criticism from some families of the victims. They argue that Boeing should face a public trial and that the agreement does not deliver true justice.

"This kind of non-prosecution deal is unprecedented and obviously wrong for the deadliest corporate crime in US history," said Paul Cassell, a lawyer representing some of the families. "My families will object and hope to convince the court to reject it."

According to CNN, many family members have pushed for criminal charges against Boeing and its executives. A previous settlement reached in 2021 had deferred prosecution, but new safety concerns — including a door panel incident on an Alaska Airlines flight earlier this year — reopened the case.

While that January incident didn't cause any injuries, it allowed the DOJ to reconsider the original agreement, leading to the current deal.

The DOJ defended the decision, saying it weighed all sides before settling. "They [the families] hold a broad set of views regarding the resolution, ranging from support to disagreement," a DOJ spokesperson said.

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