Boeing will pay $2.5 billion to settle a Justice Department investigation and admit that employees misled regulators about the safety of its 737 Max aircraft, which suffered two deadly crashes shortly after entering airline service.
The government and the company said Thursday that the settlement includes money for the crash victims’ families, airline customers and a fine.
Prosecutors said Boeing employees gave misleading statements and half-truths about safety issues with the plane to the Federal Aviation Administration, then covered up their actions.
Boeing blamed two former pilots who helped determine how much training was needed for the Max. CEO David Calhoun said their conduct doesn’t reflect Boeing employees as a whole or the character of the company.
The government will drop the criminal charge of conspiracy to defraud the U.S. after three years if Boeing follows the terms of the settlement. (AP)