From Investing.com: 2024-07-08 16:56:02

Boeing is in talks with the U.S. Defense Department concerning a planned guilty plea for a criminal fraud conspiracy charge linked to two fatal 737 MAX crashes. If the guilty plea is finalized, government contracts with agencies like the U.S. Defense Department and NASA could be at risk.

The Pentagon will evaluate the impact of Boeing’s guilty plea on its contracts. Based on U.S. government contracting regulations, necessary actions will be determined. Boeing’s Defense and Space unit, critical to its business, generated $7 billion in first-quarter sales. U.S. government contracts represented 37% of Boeing’s revenue last year.

Boeing will pay a criminal fine of $243.6 million as part of the plea deal. An additional $455 million will be invested over three years to enhance safety and compliance programs. The Justice Department will appoint an independent monitor to oversee compliance for three years as well. Family members of crash victims aim to object to the plea deal in future hearings.

The Canadian government is awaiting decisions on legal proceedings related to Boeing’s guilty plea and assessing potential implications. Boeing faces the possibility of restrictions on future exports to various international markets. Increased defense spending amid rising geopolitical tensions further complicates the situation. Senator Tammy Duckworth emphasized the importance of continued oversight of Boeing and the FAA by Congress.



Read more at Investing.com: Boeing in talks with US Defense Department on impact of guilty plea, source says By Reuters