Amidst protesters in attendance, Boeing CEO Dave Calhoun appears before a Senate subcommittee to address lawmakers' questions regarding issues at the airplane manufacturer.


July 1, 2024 Tags:

The U.S. Justice Department is preparing to propose that Boeing admit to fraudulent actions linked to two fatal crashes involving its 737 Max airplanes. According to sources familiar with the matter, Boeing has until the end of the week to decide whether to accept the deal, which would entail the company acknowledging guilt and appointing an independent overseer to ensure compliance with anti-fraud regulations.

Federal prosecutors outlined this offer to families of the 346 victims who perished in the crashes of 2018 and 2019 during a video conference. Mark Lindquist, representing some of the families suing Boeing, and another participant recounted the meeting where emotions ran high. Family members expressed dismay at the prospect of Boeing pleading guilty to an older charge rather than facing additional charges through a trial. Some accused prosecutors of manipulating them emotionally, leading to heated exchanges during the session.

Nadia Milleron from Massachusetts, whose daughter Samya Stumo died in the second crash, voiced frustration, saying, "They should just pursue prosecution instead of bargaining. They suggested we argue our case before a judge."

If Boeing declines the proposed plea deal, prosecutors affirmed they would seek a trial. Boeing has refrained from commenting on the matter.

This development comes after prosecutors informed a federal judge that Boeing violated a January 2021 agreement shielding it from criminal prosecution concerning the crashes in Indonesia and Ethiopia. Legal experts speculate that a conviction could endanger Boeing's status as a major federal contractor, given its substantial contracts with the Pentagon and NASA.

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