Boeing Pleads Guilty To ‘Criminal Fraud’ Related To Fatal Crashes

Boeing Co. (BA) has pled guilty to “criminal fraud conspiracy” and agreed to pay a fine of $243.6 million U.S. to resolve a U.S. Justice Department case related to two fatal crashes of its 737 MAX commercial aircraft.

The charge and plea deal relates to actions taken by Boeing executives to mislead aviation regulators before two 737 MAX aircraft fatally crashed in 2019, killing 346 people.

In addition to the fine, Boeing must also operate with a corporate monitor for the next three years and spend $455 million U.S. to improve its compliance and safety record.

The latest plea deal comes as Boeing faces multiple lawsuits and regulatory actions related to the safety of the commercial airplanes it manufactures.

In January of this year, a door plug on a Boeing 737 Max 9 aircraft blew off midflight, plunging the company into a new crisis.

Boeing is one of only two commercial aircraft manufacturers in the world along with Airbus SE (AIR) of Europe.

Earlier in July, Boeing agreed to buy parts supplier and subcontractor Spirit AeroSystems (SPR) for $4.7 billion U.S. to take greater control of its manufacturing process.

Boeing’s stock is down 27% on the year and currently trading at $184.83 U.S. per share.

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