The Strategist

US Justice Department to propose Boeing plead guilty to knowingly defrauding regulators

07/02/2024 - 10:42

The Wall Street Journal reports that the U.S. Justice Department will demand that Boeing Co. enter a guilty plea for willfully misleading air safety regulators about material facts regarding the 737 MAX airplanes, which resulted in two crashes.

The Lamb Family
The Lamb Family
This nullifies an earlier, more permissive agency ruling against the business from over three years ago.

According to WSJ sources, Boeing has to enter a guilty plea until the end of this week; if not, it will be subject to legal action. Authorities would not accept an agreement on more liberal terms and are hesitant to talk with Boeing, adds the newspaper.

The parameters of the DOJ's proposed agreement were disclosed to the families of those deceased in the two crashes. According to the deal, Boeing must engage a third-party consultant to keep an eye on the business' adherence to aviation regulations. Boeing would also be required to pay an extra $243 million in fines.

According to the WSJ, the company's guilty plea would mark the conclusion of a protracted legal battle that appeared to have been settled in January 2021. Boeing was put on probation at that point after it acknowledged that two of its former workers had misled the Federal Aviation Administration (FAA) about the circumstances surrounding the 737 MAX aircraft.