New York, USA (CNN) – Boeing reached a $ 2.5 billion settlement with the Department of Justice on Thursday to settle criminal charges that the company defrauded the Federal Aviation Administration when it first obtained approval for the defective 737 MAX.
The plane was stopped by the Federal Aviation Administration in March of 2019 after two fatal accidents that killed 346 people. And it was approved by the Federal Aviation Administration to carry passengers again in November after several changes were made to the defective safety system that caused the accidents, which is the center of this fraud case.
“Misleading and half-truthful statements that Boeing employees sent to the Federal Aviation Administration impeded the government’s ability to ensure the safety of air travelers. This case sends a clear message: The Department of Justice will hold manufacturers like Boeing accountable for defrauding regulators,” said US Attorney Irene Nelly Cox of North Texas Especially in industries where the risk is high.
The settlement was immediately criticized by some as a slap on the wrist, representing about 70% of the $ 2.5 billion in payments Boeing had already agreed to pay to its airline customers as compensation.
“The settlement amount in dollars is only a fraction of Boeing’s annual revenue, as the settlement avoids any real accountability regarding criminal charges,” said Representative Peter DeVasio, a Democrat from Oregon who chairs the House Transportation and Infrastructure Committee, adding that it also counts. An insult to the 346 victims of corporate greed. “
The government file against the company said that at least two unidentified Boeing employees were involved in fraud from late 2016 in the final stages of approval for the aircraft until late 2018, when the aircraft was already in use and after the first crash.
According to the report, at least one employee left Boeing in July 2018 to work for an airline. The employment status of the other employee has not been determined. Boeing has agreed to cooperate with any individual trials arising from the case.
The settlement includes a criminal fine of $ 243.6 million, compensation of $ 1.77 billion for Boeing Airlines customers, and an additional $ 500 million for the compensation fund for family members of accident victims. Boeing has already set aside money in the past for airlines and $ 100 million for families of victims. It said it would incur an additional $ 743.6 million in fees for profits from the settlement.
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