US prosecutors recommend criminal charges against Boeing for violating settlement related to fatal crashes

From Investing.com: 2024-06-23 17:30:39

U.S. prosecutors are recommending criminal charges against Boeing for violating a settlement related to two fatal crashes involving the 737 MAX jet in 2018 and 2019. The Justice Department must decide by July 7. The 2021 deal shielded Boeing from a fraud charge and required a $2.5 billion settlement.

Boeing denies violating the settlement terms and disagrees with the Justice Department’s determination. Discussions are ongoing between the parties, with no guarantee of charges. Possible resolutions include extending the settlement or proposing new, stricter terms that may involve financial penalties and compliance monitoring.

The DOJ could consider criminal charges beyond the original 2021 fraud conspiracy charge. Boeing may be willing to pay a penalty and accept a monitor but hesitates at pleading guilty. Executives have apologized for safety shortcomings at a Senate hearing, and families of crash victims have urged a $25 billion fine.

The ongoing investigation could deeply impact Boeing, which faces criticism from U.S. prosecutors, regulators, and lawmakers. No final decisions have been made by the Justice Department. Potential outcomes include extending the settlement or imposing stricter terms for compliance monitoring.



Read more at Investing.com: Exclusive-US prosecutors recommend DOJ criminally charge Boeing as deadline looms By Reuters