Boeing to Plead Guilty in 737 MAX Fraud Case: A Major Turning Point

Boeing has agreed to plead guilty to a criminal fraud conspiracy charge to resolve a U.S. Justice Department investigation linked to two fatal 737 MAX crashes. The company will pay a fine of $243.6 million and invest $455 million in safety and compliance programs. A third-party monitor will oversee the firm's compliance.

Boeing has agreed to plead guilty to a criminal fraud conspiracy charge to settle a U.S. Justice Department probe related to two deadly 737 MAX crashes, the government announced. Approval from a federal judge is required to finalize the plea, which means Boeing will be classified as a convicted felon.

The charge stems from two 737 MAX crashes in Indonesia and Ethiopia in 2018 and 2019, killing 346 people. This plea could endanger Boeing's ability to secure lucrative government contracts, although the company can seek waivers. The Justice Department had found Boeing violated a 2021 settlement dealing with these crashes, opening the door for prosecution.

The plea avoids a potentially damaging trial and aids the firm's future endeavors, including seeking approval for acquiring Spirit AeroSystems. Boeing will also invest $455 million in safety and compliance programs over three years, monitored by a third-party appointed by the DOJ. This agreement excludes the company from other potential investigations or charges.

(With inputs from agencies.)