Boeing to pay US$2.5 billion settlement over 737 MAX criminal probe

Boeing has entered into an agreement with the U.S. Department of Justice (DOJ), which resolves the Department’s investigation into the company relating to the evaluation of the Boeing 737 MAX airplane by the Federal Aviation Administration (FAA). As part of Boeing’s resolution with the DOJ, the Department has agreed to defer prosecution of the company, provided that Boeing abides by the obligations set forth in a three-year deferred prosecution agreement, after which time the charge will be dismissed.

Under the agreement, Boeing will pay a penalty of US$243.6 million and provide US$500 million in additional compensation to the families of those lost in the Lion Air and Ethiopian Airlines accidents. The agreement also includes a commitment to provide US$1.77 billion to Boeing’s airline customers as part of the company’s ongoing efforts to compensate those customers for financial losses resulting from the grounding of the 737 MAX.

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