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On Monday, a U.S. judge set a rapid schedule to address objections from the victims’ families regarding the Justice Department’s plea deal with Boeing Co. (NYSE:BA) on legal proceedings over its involvement in two fatal 737 MAX crashes.
The company recently agreed to plead guilty to criminal fraud conspiracy and pay a $243.6 million fine.
District Judge Reed O’Connor of Texas outlined that after the Justice Department files the plea agreement, relatives of the crash victims will have a week to file their objections, reported Reuters.
Following this, the government and Boeing will have two weeks to respond, with the families then having five days to file a final response.
Erin Applebaum, a lawyer representing some of the victims’ families, criticized the deal as a “slap on the wrist” last week.
Boeing has agreed to plead guilty to conspiring to defraud the Federal Aviation Administration (FAA). The government accused the company of making false representations about crucial software for the 737 MAX.
This plea follows a breach of a 2021 deferred prosecution agreement, according to the Justice Department.
The 737 MAX crashes in Indonesia and Ethiopia in 2018 and 2019 resulted in 346 deaths and led to a 20-month grounding of the aircraft.
Also Read: How Boeing’s Guilty Plea Could Impact US Defense Contracts
Judge O’Connor has previously referred as saying “Boeing’s crime may properly be considered the deadliest corporate crime in U.S. history.”
The Justice Department plans to file the plea agreement by July 19, though additional time might be required. Boeing has also committed to spending at least $455 million over three years to enhance safety and compliance programs.
The company’s board will meet with the victims’ families as part of this deal. An independent monitor will oversee Boeing’s compliance, filing annual progress reports, and Boeing will be on probation for the monitor’s three-year term, the report further added.
In a related incident, a Boeing 737 MAX 9 jet experienced a panel blow-off during a January 2021 Alaska Airlines flight, two days before the expiration of the deferred agreement that protected Boeing from prosecution for the earlier crashes.
Boeing is under a separate criminal probe for this incident, which did not result in any serious injuries.
Boeing stock has lost more than 15% in the last 12 months. Investors can gain exposure to the stock via IShares U.S. Aerospace & Defense ETF (BATS:ITA) and Invesco Aerospace & Defense ETF (NYSE:PPA).
Price Action: BA shares closed lower by 1.76% at $179.11 on Monday.
Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.
Photo Courtesy: Tada Images On Shutterstock.com
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