Title: Boeing Reaches $2.5 Billion 737 Max Settlement with U.S. - The New York Times
Headings: Boeing Reaches $2.5 Billion Settlement With U.S. Over 737 Max
Today in Business
Boeing Reaches $2.5 Billion Settlement With U.S. Over 737 Max
The company agreed to a deferred prosecution agreement with the Justice Department.
Today in Business
Latest Updates

Content: Such a move could have potentially put Boeing, one of the largest U.S. manufacturers, out of business and cost tens of thousands of jobs at the plane maker, its suppliers and other businesses. The criminal charge against the company centered on the actions of two employees who withheld information from the F.A.A. about changes made to software known as MCAS. The software was later implicated in both crashes. “Boeing’s employees chose the path of profit over candor by concealing material information from the F.A.A. concerning the operation of its 737 Max airplane and engaging in an effort to cover up their deception,” David P. Burns, acting assistant attorney general of the department’s criminal division, said in a statement. “ This resolution holds Boeing accountable for its employees’ criminal misconduct, addresses the financial impact to Boeing’s airline customers, and hopefully provides some measure of compensation to the crash-victims’ families and beneficiaries.” As part of Thursday’s agreement, Boeing will establish a $500 million fund to compensate the families of those who died and pay a fine of nearly $244 million. The company will also pay $1.77 billion in compensation to its airline customers who were unable to use or take deliveries of the Max, which remains grounded in some parts of the world. American Airlines last week became the first U.S. carrier to resume flights aboard the plane after the F.A.A. lifted its grounding in November, provided Boeing or airlines make certain modifications to the plane. “I firmly believe that entering into this resolution is the right thing for us to do — a step that appropriately acknowledges how we fell short of our values and expectations,” David Calhoun, who was appointed Boeing’s chief executive in January 2020, said in a note to employees. “ This resolution is a serious reminder to all of us of how critical our obligation of transparency to regulators is, and the consequences that our company can face if any one of us falls short of those expectations.”