(Reuters) – Boeing Co. will pay over $ 2.5 billion to solve the Justice Department's investigation into two deadly 737 MAX crashes that killed 346 people.
The department said Thursday that the settlement includes a criminal penalty of $ 243.6 million, compensation payments to Boeing's 737 MAX flight customers of $ 1.77 billion and the establishment of a $ 500 million crash victim beneficiary to compensate passengers' heirs, relatives and legal benefits.
The crashes led to the aircraft being launched for 20 months in March 2019, which only took off in November after Boeing made significant safety upgrades.
Boeing was accused of a number of conspiracies to deceive the United States. The largest American aircraft manufacturer is facing a three-year deferred prosecution agreement, after which the fee will be dismissed if the company complies with the agreement.
"The tragic crashes of Lion Air Flight 61
Boeing admitted in court documents that two of its 737 MAX Flight Technical Pilots deceived the Federal Aviation Administration about an important safety system linked to both fatal crashes called MCAS.
Boeing CEO David Calhoun said in a statement that the agreement "correctly recognizes how we do not meet our values and expectations."  The airline's payment fund includes previous payments that Boeing has already made to the airlines.