The U.S. Department of Justice (DoJ) has moved to dismiss a criminal fraud charge against Boeing Co. (NYSE:BA), linked to the two fatal 737 MAX plane crashes, following an agreement with the aerospace giant.
What Happened: The Justice Department has requested a federal judge to drop the criminal charges aimed at Boeing, which was a result of the two fatal 737 MAX plane crashes that claimed 346 lives, reported Reuters. This decision follows an agreement between Boeing and the Justice Department.
As part of the settlement, Boeing will avoid being labeled a convicted felon. However, the company has agreed to contribute an additional $444.5 million to a fund for the crash victims.
This sum will be evenly distributed among the victims’ families, in addition to a $243.6 million fine. This brings Boeing’s total payment to $1.1 billion, covering the fine, compensation to the victims’ families, and over $455 million to enhance the company’s compliance, safety and quality programs.
The Justice Department defended the deal, stating it “secures meaningful accountability, delivers substantial and immediate public benefits and brings finality to a difficult and complex case whose outcome would otherwise be uncertain.”
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Why It Matters: The Justice Department’s decision to drop the criminal fraud charge against Boeing comes after it offered the company a deal to avoid prosecution over the 737 MAX crashes. This development has reignited scrutiny over Boeing’s accountability and safety practices.
The deal has drawn criticism from the family members of the crash victims, as well as some lawmakers. Despite this, the Justice Department has defended the agreement, stating that it ensures “meaningful accountability” and delivers “substantial and immediate public benefits.”
Despite the legal challenges, Boeing has been making strides in its operations. The company recently announced plans to ramp up production of the 737 MAX, which contributed to a surge in its shares. This indicates that the company is working to overcome the challenges it has faced in recent years.
Boeing holds a momentum rating of 86.78% and a growth rating of 25.18%, according to Benzinga's Proprietary Edge Rankings. The Benzinga Growth metric evaluates a stock’s historical earnings and revenue expansion across multiple timeframes, prioritizing both long-term trends and recent performance.
On a year-to-date basis, Boeing shares surged 21.13%.
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Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.
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