The Department of Justice (DOJ) charged the company in 2021 with conspiracy to defraud the U.S. after 346 people died in separate Boeing 737 Max 8 Lion Air and Ethiopian Air crashes, but it deferred the prosecution after the company agreed to pay a $2.5 billion fine.
Following the high-profile blowout of a Boeing 737 Max 9 door plug during an Alaska Airlines flight in January, the DOJ said last month that Boeing violated that agreement and would decide whether to move forward with the prosecution by July 7.
“Because Boeing’s crime is the deadliest corporate crime in U.S. history, a maximum fine of more than $24 billion is legally justified and clearly appropriate, although it might be partially suspended if funds that would otherwise be paid are devoted to appropriate quality control and safety measures,” wrote Paul Cassell, who represents some of the victims’ families.
A Senate subcommittee grilled Boeing CEO Dave Calhoun on Tuesday in his first congressional testimony since the Alaska Airlines incident, and he sought to assure lawmakers the company was taking steps to improve its safety culture and quality controls.
The Senate Homeland Security and Governmental Affairs Permanent Subcommittee on Investigations hammered the executive on whistleblower allegations of safety concerns, corner cutting and corporate retaliation, including new allegations released by Chair Richard Blumenthal (D-Conn.) hours before Calhoun was set to testify.
Boeing quality assurance inspector Sam Mohawk alleged the company mishandled “hundreds” of faulty parts that were likely installed on airplanes including the 737 Max. In a complaint filed June 11 with the Occupational Safety and Health Administration (OSHA), Mohawk also alleged he faced “unlawful retaliation” by Boeing when he raised those concerns.
Calhoun began his testimony by standing and turning to apologize to the victims’ families.
The Hill’s Taylor Giorno has more here.
