The U.S. Department of Justice (DOJ) has requested the dismissal of criminal fraud charges against Boeing (BA, Financial) after reaching a non-prosecution agreement with the company. These charges stem from two fatal Boeing 737 MAX crashes in Indonesia and Ethiopia in 2018 and 2019, which resulted in 346 deaths.
Under the agreement, Boeing will avoid prosecution by agreeing to pay an additional $444.5 million to a victims' fund, on top of a $243.6 million fine. In total, Boeing will pay $1.1 billion, which includes fines, compensation to victims' families, and $455 million dedicated to enhancing compliance, safety, and quality programs.
The DOJ stated that the agreement ensures accountability, provides significant public benefits, and concludes a complex case with uncertain outcomes. Boeing CEO Kelly Ortberg finalized the agreement, which had been tentatively reached the previous week.
Most families of the 346 crash victims have settled civil lawsuits with Boeing, receiving billions in compensation. Boeing emphasized its commitment to fulfilling the agreement's obligations, including the substantial fine and further improvements in systems and investments.
