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Boeing has agreed to plead guilty to conspiracy and pay nearly $250 million in penalties as part of a proposed plea agreement with the Justice Department. This settlement concludes a multiyear investigation into two fatal crashes involving its MAX aircraft.

What’s the deal? As part of the proposed plea deal, Boeing will pay $250 million in penalties, invest $455 million in compliance programs, and undergo a three-year organizational probation. Additionally, the company’s board will meet with the families of those who lost loved ones in the crashes. This plea deal still requires approval from a judge. 

What caused the crashes: The crashes of Boeing’s MAX aircraft in 2018 and 2019 were attributed to software errors in the Maneuvering Characteristics Augmentation System (MCAS). Federal investigators found that the MCAS malfunctioned, issuing automatic nose-down commands that caused the planes to enter uncontrollable dives. These malfunctions led to the crashes, which tragically claimed nearly 350 lives.

Boeing being shady?: Boeing was accused of deceptive practices concerning the safety of its MAX aircraft. The company misled the Federal Aviation Administration (FAA) by providing incomplete and inaccurate information about the MCAS software. This misinformation compromised safety and played a role in the approval and deployment of the flawed system. Boeing downplayed the software’s significance and withheld crucial details that might have prevented the crashes.

Opposition from some families: An attorney representing some of the families who lost loved ones from the crashes, said, “The proposed plea has all the problems in it that the families feared it would have. We will file a strong objection to the preferential and ‘sweetheart’ treatment Boeing is receiving within seven days with Judge O’Connor. We will strong urge him to reject this proposed plea.”

Boeing responds: In a statement, Boeing said, “Boeing and the Justice Department have filed a detailed plea agreement in federal court, which is subject to court approval. We will continue to work transparently with our regulators as we take significant actions across Boeing to further strengthen our safety, quality and compliance programs.”