Boeing to Plead Guilty to Fraud Charge Over 737 Max Crashes

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The Facts

  • Boeing has agreed to plead guilty to conspiracy to defraud the US over two plane crashes that killed 346 travelers, the US Dept. of Justice (DOJ) said in a filing late on Sunday.

  • As part of the plea deal — which a federal judge in Texas must approve before it comes into effect — Boeing will pay a $243.6M fine and invest at least $455M on safety and compliance over the next three years.


The Spin

Narrative A

While it could hurt Boeing's lucrative contracts with the US government, this agreement will enable the firm to move beyond these incidents without the embarrassment of a public trial. This is the best thing for the company's clean-up process as it's looking to appoint a new chief executive officer and is seeking to acquire Spirit AeroSystems.

Narrative B

This is a deeply inappropriate deal that fails to acknowledge that 346 people died as a result of Boeing's dubious safety and quality standards. It also allows the company to shield the public from the extent of those failures by avoiding a public trial. The judge assessing the deal must uphold the principles of justice and accountability.


Metaculus Prediction


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