Boeing Reaches $1.1B Deal With DOJ To Avoid Prosecution In Two 737 Max Crashes

Boeing Co. (BA) has struck a deal with the U.S. Department of Justice (DOJ) to avoid criminal prosecution over two deadly crashes involving the 737 Max jet that killed 346 people.

Boeing’s shares were up 0.35% in Thursday’s pre-market trading session.

Boeing revealed the terms of the deal in a filing with the U.S. Securities and Exchange Commission (SEC) on Wednesday, stating that it would pay and invest up to $1.1 billion.

Of this, $444.5 million will go to the families of those who died in the 737 Max crashes in 2018 and 2019.

The company's filing stated that it will invest $445 million in enhancing its compliance, safety, and quality programs.

It has also paid $243 million as a criminal penalty, which it agreed to in 2021.

In May, a lawyer, who represents some of the families of victims of Boeing’s fatal crashes involving the 737 Max aircraft, urged the U.S. Department of Justice (DOJ) to take the airplane manufacturer to trial.

That trial won’t take place now.

The DOJ said in its filing that the agreement “guarantees further accountability and substantial benefits from Boeing immediately, while avoiding the uncertainty and litigation risk presented by proceeding to trial.”

More recently, the U.S. Federal Aviation Administration’s (FAA) acting head, Chris Rocheleau, said the agency will not lift the production cap on the 737 Max jet. Boeing is currently allowed to manufacture thirty-eight 737 Max jets in a month.

Boeing’s stock is up nearly 20% year-to-date and almost 12% over the past 12 months.

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