Boeing will pay more than $ 2.5 billion to settle a criminal conspiracy

Boeing’s problem has been solved, at least for now. The aviation giant has agreed to pay more than $ 2.5 billion to arrange a criminal investigation by the U.S. Department of Justice, which accused the company of concealing information about its 737 Max aircraft that was involved in two accidents that claimed 346 lives, federal prosecutors said Thursday.

Prosecutors said Boeing conspired “knowingly and intentionally” to defraud the United States by undermining the Federal Aviation Administration’s ability to assess aircraft safety. Boeing admitted that two of the technical pilots of its Max 737 flight “cheated” the FAA on the capabilities of an airplane flight control system, software that was later integrated into the two crashes, the Justice Department said.

The $ 2.51 billion fine consists of a $ 243.6 million criminal fine, a $ 500 million fine for the family of crash victims and $ 1.77 billion for its airline customers. The company said it had already accounted for a large portion of those costs in previous quarters and expects to charge $ 743.6 million in fourth-quarter earnings for 2020 to cover the rest.

“The tragic crashes of Lyon Air Flight 610 and Ethiopian Airlines Flight 302 have exposed the fraudulent and deceptive conduct of employees of one of the world’s leading commercial aircraft manufacturers,” the Deputy Attorney General wrote in practice. David Burns From the Criminal Department of the Ministry of Justice. release. “Boeing employees have chosen a path of profit over honesty by hiding material information from the FAA regarding the operation of its 737 Max aircraft and engaging in an effort to cover up their fraud.”

The company admitted the wrongful offense and waived its rights to the trial as part of the deal with the DOJ to settle the charges. The agreement also did not impose the senior executives there and said that the misconduct was not comprehensive nor were there any senior executives. “This is a fundamental settlement of a very serious matter, and I strongly believe that entering into this decision is the right thing for us to do – a step that properly recognizes how we have fallen from our values ​​and expectations,” the CEO said. Dave Calhoun. In a note to Boeing employees.

The crashes put Boeing in its worst crisis ever, damaging the reputation of the world’s largest aircraft manufacturer. Last month, the FAA approved software and other safety changes made by Boeing on planes, and cleared airlines to start flying them again. American Airlines last month became the first American airline to return its aircraft to commercial service.

Lawyers representing the families of the victims on Ethiopian Airlines Flight 302 have said they intend to continue their lawsuit against Boeing. “This agreement, including the Crash Victims’ Benefit Fund, has no bearing on the civil litigation against Boeing, which we plan to fully prosecute to ensure families receive the justice they deserve,” they said. Boeing shares fell less than 1% in afternoon trading