Boeing escapes prosecution for deadly 737 MAX crashes

Boeing and the Department of Justice reached a deal regarding two 737 MAX crashes that resulted in the deaths of 346 people.

Friday court filings revealed that Boeing has agreed to “pay or invest” over $1.1 billion, which includes a $487.2 million criminal fine, $445 million to the crash victims’ families, and another $445 million on compliance, safety, and quality programs.

‘Nothing will diminish the victims’ losses, but this resolution holds Boeing financially accountable, provides finality and compensation for the families, and makes an impact for the safety of future air travelers.’

The agreement allows Boeing to avoid prosecution for the deadly 2018 and 2019 plane crashes.

RELATED: Boeing agrees to plead guilty to criminal fraud over fatal 737 MAX crashes: DOJ

Crash site of Ethiopia Airlines on March 11, 2019. MICHAEL TEWELDE/AFP via Getty Images

The DOJ stated, “Ultimately, in applying the facts, the law, and Department policy, we are confident that this resolution is the most just outcome with practical benefits.”

Paul Cassell, an attorney for many of the victims’ families, said, “Although the DOJ proposed a fine and financial restitution to the victims’ families, the families that I represent contend that it is more important for Boeing to be held accountable to the flying public.”

In a separate statement, Cassell called the deal “unprecedented and obviously wrong for the deadliest corporate crime in U.S. history.”

He noted that the families plan to object to the non-prosecution deal.

RELATED: Boeing burns billions, now begs for a $15 billion lifeline

The crash site of Ethiopian Airlines Flight ET 302 on March 12, 2019 in Bishoftu, Ethiopia. Photo by Jemal Countess/Getty Images

“Nothing will diminish the victims’ losses, but this resolution holds Boeing financially accountable, provides finality and compensation for the families, and makes an impact for the safety of future air travelers,” the DOJ stated.

In July, the company agreed to plead guilty to conspiring to defraud the Federal Aviation Administration after it allegedly “deceived” the FAA’s Aircraft Evaluation Group “about an important aircraft part called the Maneuvering Characteristics Augmentation System (MCAS) that impacted the flight control system of the Boeing 737 MAX,” according to the DOJ.

Cassell previously referred to the DOJ agreement as a “sweetheart plea deal” for Boeing.

Boeing did not respond to a request for comment from CNBC.

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