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    US asks judge to dismiss criminal case over Boeing 737 MAX crashes

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    The US Department of Justice has asked a judge to drop a criminal fraud charge against air industry giant Boeing, citing a settlement deal between the company and the government. This follows the fatal crashes of two Boeing 737 MAX planes that resulted in 346 deaths.

    Financial Penalties and Compensation for Victims

    As reported by Reuters, part of the settlement involves Boeing consenting to a total $1.1 billion settlement. The terms include a criminal fine of $243.6 million and paying $444.5 million into a new fund created for families of the crash victims. The compensation will be divided equally amongst the families of both crashes.

    Even though it initially offered to plead guilty to fraud a year ago, Boeing will escape a felony conviction under the new deal. According to the Justice Department, the agreement closes a prolonged case but achieves this while holding the company accountable. The agreement seeks to “secure meaningful accountability, deliver substantial and immediate public benefits, and bring finality to a difficult and complex case whose outcome would otherwise be uncertain,” the department wrote in its release.

    Commitment to Compliance and Safety

    Apart from the monetary sanctions, Boeing will spend more than $455 million to bolster its internal compliance, safety, and quality assurance programs. The action aims at averting future breakdowns that would threaten public safety or violate the rules. The company will be working under tight supervision to see that the improvements are properly implemented.

    The settlement of the case has been controversial, particularly amongst safety campaigners and families of the victims, some of whom had been pushing for tougher legal penalties. Federal prosecutors, however, contend the deal meets the goal of being tough on Boeing financially and physically without exhausting everyone in an extended courtroom battle that would possibly fail to lead to a conviction.

    Boeing’s future is now contingent upon its capacity to restore public confidence and achieve increased safety and compliance requirements. Boeing’s leadership has committed to learning from past mistakes and establishing reforms that place passenger safety on top of the agenda.

    (With Inputs from Reuters)

    Published By:

    Rivanshi Rakhrai

    Published On:

    May 30, 2025



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