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US asks Judge to Dismiss Boeing 737 MAX Criminal Fraud Case

The U.S. Justice Department asked a federal judge on Thursday to dismiss criminal fraud charges against Boeing arising from two deadly 737 MAX crashes in which 346 people died, claiming that it had reached an agreement with the planemaker.

Boeing avoids being labeled a felon under the agreement, but has agreed to pay $444.5 millions into a fund for crash victims, which will be distributed evenly among each crash victim, on top of a $243.6-million fine.

Boeing, who last year agreed to plead guilt as part of an agreement, will pay a total of $1.1 billion, including fines and compensation for families, plus over $455 millions to improve the company's safety, quality, and compliance programs, according to the Justice Department.

Families who had lost loved ones in the crashes have harshly criticised the agreement and urged prosecutors to bring Boeing to court. Two U.S. Senators and a lawyer representing family members urged the Justice Department to continue its investigation. Some lawyers have also vowed not to accept the deal.

The deal, according to the government, "secures meaningful public accountability, delivers immediate and substantial benefits and finalizes a complex and difficult case whose outcome was otherwise uncertain."

Boeing CEO Kelly Ortberg finalized the deal on Thursday. The Justice Department had announced last week that it had reached a principle agreement.

The Justice Department stated that the vast majority (of the 346 families) of those killed in the crashes settled civil lawsuits with Boeing, and collectively "paid several billion dollar."

Boeing is committed to meeting its obligations under today's resolution, including a substantial fine as well as commitments for further institutional improvements and investment," the company announced on Thursday.

Boeing will not be subject to the oversight of an independent monitor as part of the agreement. Instead, Boeing will hire a consultant for compliance. Boeing's board will have to meet the families as a condition of this deal.

First reported on 16 May that Boeing had entered into a tentative agreement of non-prosecution with the government.

The agreement will prevent a trial scheduled for June 23 against the planemaker over a charge that it misled U.S. regulatory authorities about a critical flight control system in the 737 MAX jet, its most popular model.

Boeing pleaded guilty in July to a criminal conspiracy charge of fraud after the two fatal 737 MAX crash in Indonesia and Ethiopia that occurred between 2018 and 2019.

In 2023, Judge Reed O'Connor of Texas stated that "Boeing's crimes may be properly considered as the deadliest corporate crimes in U.S. history." (Reporting and editing by David Shepardson, David Gregorio).

(source: Reuters)