The settlement of the criminal proceeding includes the fine in the sum of $243.6 million and compensation payments in the sum of $1.77 billion to clients of Boeing 737 MAX. Moreover, the company will also establish the aid-fund for victims in the crashes for $500 million for payment of compensation to heirs, relatives and legal beneficiaries of deceased passengers.
Boeing Co also stated it expects to carry additional costs in the sum of $743.6 million in the fourth quarter within the settlement.
The crashes “exposed fraudulent and deceptive conduct by employees of one of the world’s leading commercial airplane manufacturers,” acting Assistant Attorney General David Burns said.
Boeing was accused of the criminal conspiracy to fraud the U.S. authorities, particularly, the Federal Aviation Administration.
The company recognized that two employees of 737 MAX decided to fraud FAA concerning the safety system MCAS that was tied with both crashed in Indonesia and Ethiopia.
The families of victims of Boeing 737 crashes will continue to sue the air constructor after the settlement.
The company faced about 140 lawsuits from the families of the victims in Ethiopia and it has settled the majority of the lawsuits tied wit Lion Air crash in Indonesia.
346 people died as a result of crashes 737 MAX planes in Indonesia and Ethiopia during five months in 2018 and 2019.
The U.S. Congress adopted the law reforming the procedures of certification of planes by FAA.
In March 2019, the launch of Boeing 737 MAX was stopped. The ban for flights was lifted in November 2020 when Boeing has increased the safety and improved the preparation of the pilots.