“Highly Disappointed” – Boeing’s Guilty Plea Falls Short of Justice

Lawyers and the crash victims’ families are “highly disappointed” in the plea agreement, arguing for the case to go to public trial. 

Boeing is Pleading Guilty 

According to the US Justice Department (DoJ), on Sunday night, Boeing agreed to plead guilty to a criminal fraud conspiracy charge. 

This is to avoid a criminal trial related to an investigation into its two deadly crashes involving 737 MAX jetliners. 

Fatal Flights 

Those two crashes, which occurred in 2018 in Indonesia and in 2019 in Ethiopia, killed 346 passengers, resulting in the victims’ families demanding that the airliner face prosecution. 

In Agreement 

According to a Boeing spokesperson to FOX Business: “We can confirm that we have reached an agreement in principle on terms of a resolution with the Justice Department, subject to the memorialization and approval of specific terms”.   

But Wait… 

Boeing will pay fines up to $487 million, which is a fraction of the $24.8 billion demanded from the crash victims’ families. As per the agreement, Boeing will also operate under the oversight of an independent monitor (selected by the government) for three years. 

The DoJ said that the families are opposed to the new deal. 

A Black Eye for Boeing 

The airliner’s decision to plead guilty is a massive smudge on its reputation, as it means that the company now has a criminal record. 

Boeing – a prominent military contractor for the US government – is also one of the world’s two biggest manufacturers of commercial jets. 

Moving Forward 

It’s not currently clear how Boeing’s criminal record will impact its contracting business. Companies with records are usually barred or suspended by the government from participating in bids, although it can grant waivers. 

A Bullet Dodged 

Boeing also managed to avoid another serious penalty, which is losing the right to conduct business with the government. 

As about 37% of the aerospace company’s 2023 revenue came from federal contracts, such a penalty would have dealt Boeing a serious blow. 

A “Sweetheart Deal” 

“This sweetheart deal fails to recognise that because of Boeing’s conspiracy, 346 people died”, says Paul Cassell, one of the lawyers for the victims’ families. 

“Through crafty lawyering between Boeing and DoJ, the deadly consequences of Boeing’s crime are being hidden”. 

Let the Public Decide! 

Cassell has called on the judge presiding over the deal to “reject this inappropriate plea and simply set the matter for a public trial, so that all the facts surrounding the case will be aired in a fair and open forum before a jury”.

Disappointing 

Robert A. Clifford, another lawyer representing some of the families, says they are “highly disappointed that the DoJ fails to account for the two crashes.” 

“Much more evidence has been presented over the last five years that demonstrates that the culture of Boeing putting profits over safety hasn’t changed,” Clifford said. “This plea agreement only furthers that skewed corporate objective.” 

A Missed Opportunity? 

Zipporah Kuria, who lost her father in one of the crashes, called the plea an “atrocious abomination”.

“Miscarriage of justice is a gross understatement in describing this,” she said. “I hope that, God forbid, if this happens again the DoJ is reminded that it had the opportunity to do something meaningful and instead chose not to”. 

Good Enough 

The DoJ, however, argues that Boeing’s penalties were the most serious available. 

It stated that it won other improvements too, including bringing in a monitor and the demand that Boeing increase its budget for safety and compliance with rules when constructing aircrafts. 

For the People? 

In its statement, DoJ said: “This resolution protects the American public. Boeing will be required to make historic investments to strengthen and integrate its compliance and safety programs. This criminal conviction demonstrates the department’s commitment to holding Boeing accountable for its misconduct”.

Looking Back 

In 2021, Boeing was charged with one count of conspiracy to defraud regulators, who alleged the firm had deceived the Federal Aviation Administration (FAA) about its MCAS flight control system. This was implicated in both crashes. 

Just a Warning 

It was agreed not to prosecute Boeing should they pay a penalty and successfully complete a three-year period of increased monitoring and reporting. 

Bad Timing 

But just before that period ended, in January this year, a door panel in a Boeing plane operated by Alaska Airlines blew out mere minutes after take-off, forcing an emergency landing. 

Although there were no injuries, the incident did escalate examinations into how much progress Boeing made in improving its safety and quality record.  

See You in Court 

In May, the DoJ said that Boeing was found to have violated the terms of the agreement, which opened the likelihood of prosecution. 

A Turn of Events 

In court, Boeing argued that it should be spared prosecution since it did not violate the agreement. 

However, the company’s guilty plea on Sunday night, mere hours before the midnight deadline set by the DoJ, took care of that matter. 

Who’s Leaving? 

Chief Executive of Boeing, David Calhoun, will leave the firm at year’s end. Calhoun replaced Dennis Muilenburg in early 2020, who was ousted after the fatal 2018- and 2019 crashes.  

Who’s the (Next) Boss?

Board Chair Larry Kellner will also exit Boeing and be replaced by the former boss of Qualcomm, Steve Mollenkopf, who has been on the board since 2020. He will also lead the search for Boeing’s next chief executive.  

Oil Dumping Scandal Rocks Ships Heading to New Orleans

Two shipping companies have been fined after knowingly hiding a large oil spill in the Atlantic Ocean. Oil Dumping Scandal Rocks Ships Heading to New Orleans

20 Eye-Opening Realities Facing Retiring Baby Boomers

As Baby Boomers approach retirement, the promise of leisure and security often seems unattainable. This generation faces unique challenges that could redefine retirement. Here’s a stark look at the realities shaping their outlook. 20 Eye-Opening Realities Facing Retiring Baby Boomers

Retail Apocalypse: Massive Closures Sweep Across U.S. Brands

Stores across the U.S. are closing at unprecedented levels, according to new research from advisory firm Coresight Research. Read on for more information about the impact this could have on you and your communities. Retail Apocalypse: Massive Closures Sweep Across U.S. Brands

Featured Image Credit: Shutterstock / JHVEPhoto.

The content of this article is for informational purposes only and does not constitute or replace professional financial advice.