“The misleading statements, half-truths and omissions communicated by Boeing officials to the FAA have impeded the government’s ability to ensure the safety of the flying public,” said District Attorney General Erin Nealy Cox of the Northern District of Texas. “This case sends a clear message: the Department of Justice will hold manufacturers like Boeing responsible for defrauding regulators – especially in sectors where the risks are so high.”
The government action against the company says that at least two unidentified Boeing employees have been involved in the fraud since the end of 2016, which is in the final stages of approval of the jet, until the end of 2018, when the plane was already in use. and after the first accident occurred.
According to the lawsuit, 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 process was not specified. Boeing has agreed to cooperate with any individual lawsuits arising from this case.
The deal includes a $ 243.6 million criminal fine, $ 1.77 billion in compensation payments to Boeing airline customers, and an additional $ 500 million to a fund to compensate family members of the crash victims. Boeing had previously set aside money to pay airlines and $ 100 million for the victims’ families. He said he will have an additional $ 743.6 million charge against profits as a result of the deal.
According to the agreement, the Justice Department would postpone any criminal proceedings against Boeing for three years and the charges will be dropped if there are no more wrongdoing by the company.
“I firmly believe that entering into this resolution is the right thing to do – a step that appropriately recognizes how we fall 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 obligation of transparency to regulators is and the consequences that our company can face if any of us falls short of these expectations.”
But several family members of the accident victims attacked the settlement like a “slap on the hand”.
“This is a Boeing protection agreement,” said Michael Stumo, father of Samya Rose Stumo, who died in the second accident in March 2019. He said that the families of the crash victims asked the Department of Justince not to reach an according to Boeing. “Boeing people who have committed fraudulent acts will not be held responsible. The government continues to protect them, despite recognizing their criminal acts. The dollar values of the deal are just rounding errors in Boeing’s corporate finances. This is a false justice. accepted by insiders, excluding victims’ families. “
“May this serve as a reminder that the current leadership of Boeing and the FAA should not be trusted with human life,” said Zipporah Kuria, a UK resident who lost his father in the second accident. “Their priority is the corporate interest in human life.” She said the deal “doesn’t even scratch the surface of justice”.
The loss of revenue from canceled, delayed or renegotiated sales could cost tens of billions more, according to experts. This could make the 737 Max disaster one of the most expensive corporate mistakes of all time, in terms of financial cost and loss of life.