Boeing has agreed to plead guilty and pay a $243.6 million fine. Here’s how the plea fits into Boeing’s ongoing challenges.
Transcript:
CONWAY GITTENS: I’m Conway Gittens reporting from the New York Stock Exchange. Here’s what we’re watching on TheStreet today.
Stocks are coming off a strong session on Wall Street after the S&P 500 and the Nasdaq notched record highs. Investors look ahead to a busy week with the start of second quarter earnings season, Fed Chair Powell’s testimony to Congress, and key inflation data expected
In other business headlines – Boeing has agreed to plead guilty to defrauding the Federal Aviation Administration. The company will plead guilty to one charge of conspiracy to defraud the United States, stemming from its role in two MAX 737 crashes that killed 346 people. According to the Department of Justice, Boeing deceived the FAA during the certification process for the aircrafts.
Boeing will pay up to $487 million in fines, however families of the victims sought more than $24 billion.
Despite the fine, Boeing also avoided what could have been a disastrous blow to the company’s future: losing its right to do business with the government. 37% of its 2023 revenue came from federal contracts.
However, the Department of Justice said the plea only resolves the issue with The Boeing Company itself, and not with any individual for their potential roles in the deception.
Boeing has lost roughly $32 billion since its 737 MAX fleet was grounded after the second fatal crash in 2019.
That’ll do it for your daily briefing. From the New York Stock Exchange, I’m Conway Gittens with TheStreet.
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