Boeing will pay more than $2.5 billion under a deal with the Department of Justice to settle a felony charge of defrauding the Federal Aviation Administration on the 737 Max aircraft.
Boeing will incur a gross fraudulent cash sum of more than $2.5 billion in the deal. That total contains the following:
- The criminal monetary punishment is $243.6 million.
- Compensation for Boeing 737 Max customers of $1.77 billion.
- And a $500 million disaster beneficiary fund for heirs, families, and beneficiaries of the
- 346 passengers killed in the Boeing 737 MAX accidents of Lion Air Flight 610 and
- Ethiopian Airlines Flight 302.
Boeing and its customers continued the service of the 737 Max, with further flights being added in 2021.
The Department of Justice alleged that Boeing had “chose the path of profit over candor” and had withheld details about weaknesses in the 737 MAX Maneuvering Characteristics Augmentation Scheme (MCAC). Boeing acknowledged that the FAA had no details on the MCAS so that the pilots had no instructional manuals and no key information.
MCAC may have played a role in Lion Air Flight 610 and Ethiopian Airlines Flight 302 as it was triggered during the flight.
Complaints and agreements are made public via the DOJ.