Boeing Co. (BA) has reached a deal with the U.S. Justice Department that will see the commercial aircraft manufacturer avoid prosecution over two crashes of its 737 Max airplanes that killed 346 people.
The decision means Boeing won’t face a trial as scheduled in June of this year, which crash victims’ families had demanded.
Officials with the Department of Justice say they met with crash victims’ family members last week ahead of the “non-prosecution agreement” being announced.
In a court filing, the Justice Department said it “is the government’s judgment that the agreement is a fair and just resolution that serves the public interest.”
Under terms of the deal, Boeing must pay a fine of $1.1 billion U.S., including a $487.2 million U.S. criminal fine.
The hefty payment also includes $444.5 million U.S. for a new fund for crash victims, and $445 million U.S. more that will go towards compliance, safety, and quality programs.
Boeing has been trying for years to put the two crashes of its best-selling Max airplanes — a Lion Air flight in October 2018 and an Ethiopian Airlines flight five months later — behind it.
The Max aircraft were grounded worldwide for nearly two years after the second crash.
Families of crash victims have demanded accountability from the company and that its executives stand trial for the crashes.
Several victim family members issued a statement shortly after the latest deal was announced, criticizing it and saying that it sets a dangerous precedent.
Boeing’s stock has gained 18% this year to trade at $202.36 U.S. per share.
