Boeing to Plead Guilty to Criminal Fraud Over 737 Max Crashes

In a court filing on Sunday, Boeing agreed to plead guilty to criminal fraud over two crashes of its 737 Max plane in 2018 and 2019 in Ethiopia and Indonesia.

Key Details: Boeing has agreed to pay $487.2 million in penalties, and over the next three years, the company will spend at least $455 million to bolster safety and compliance programs. A U.S. judge must now approve the settlement for Boeing to avoid the drama of a criminal trial, which the victims' families have been advocating for.

Key Quotes: “This resolution protects the American public,” said the Justice Department in a statement. “Boeing will be required to make historic investments to strengthen and integrate its compliance and safety programs. This criminal conviction demonstrates the department’s commitment to holding Boeing accountable for its misconduct.” Paul Cassell, an attorney for the victims, said, "This sweetheart deal fails to recognize that because of Boeing's conspiracy, 346 people died."

For Context: At a Senate hearing last month, Boeing CEO Dave Calhoun apologized to the victims of the 737 Max crashes, saying the deaths “are gut-wrenching, and I apologize for the grief that we have caused.” Since then, Boeing has faced more oversight and investigation over recent plane malfunctions.

How the Media Covered it: Fox Business (Lean Right bias) noted that the plea agreement does not protect Boeing from any other potential charges, as it only covers the company's conduct before the fatal crashes in 2018 and 2019. CNN Business (Lean Left bias) noted that more legal problems could lie ahead for Boeing and its executives.