(Reuters) – A US $ 500 million victim compensation fund for the relatives of 346 people killed in two fatal Boeing 737 MAX crashes opened on Monday, claims administrators told Reuters.
The Fund is part of a settlement with the Justice Department. Boeing Co. agreed in January to pay $ 500 million to compensate the heirs, relatives and benefits of the passengers who died in Lion Air Flight 610 and Ethiopian Airlines Flight 302 in 2018 and 2019.
Each eligible family will receive almost 1.45 million dollars and money will be paid on an ongoing basis when application forms are submitted and filled in, say administrators Ken Feinberg and Camille Biros in a joint statement. Families have until October 1
The Department of Justice and Boeing did not immediately comment.
The fund is part of a $ 2.5 billion deal reached by the Justice Department in January with Boeing after prosecutors accused the company of fraud over the certification of the 737 MAX following a Lion Air crash on October 29, 2019 and an Ethiopian Airlines flight. disaster on March 10, 2019.
The agreement allowed Boeing to avoid criminal prosecution but did not affect civil litigation from the victims' relatives it continues.
In July 2019, Boeing appointed Mr. Feinberg and Biros to oversee the distribution of separate $ 50 million to the families of the dead in the crashes, and the distribution of the new fund follows a similar formula.  While Boeing has mostly settled Lion Air lawsuits, it still faces many lawsuits in the Chicago federal court of families from the Ethiopian crash, asking why MAX continued to fly after the first disaster.
The DOJ settlement includes a $ 243.6 million fine and $ 1.77 billion in airline compensation for fraudulent conspiracy costs related to the inadequate design of the aircraft.
In January, the Department of Justice stated, “Boeing employees chose the path to profit over sincerity by concealing material information from the FAA about the operation of its 737 Max aircraft and attempting to conceal their fraud.
Some lawmakers say the government did not go far enough, while Boeing says it has taken many steps to
Congress ordered a comprehensive review of how the FAA certified new aircraft in December and conducted an independent review of Boeing's safety culture. Catalog