And in stock-related news, Boeing (BA) – Get Report is paying a charge of $2.5 billion to the Department of Justice linked to the fraud and conspiracy charges which were linked to the 737 MAX program.
Boeing said the settlement involves a criminal penalty of $243.6 million, based on the conduct of two former MAX program technical pilots, and set up a $500 million fund to provide compensation for families of the victims of the Lion Air and Ethiopian Airlines accidents. Boeing said around $1.77 billion has already been set aside for costs related to settlement and will be used to compensate its customers for the losses linked which are linked to the 737 MAX’s grounding.
“I firmly believe that entering into this resolution is the right thing for us to do—a step that appropriately acknowledges how we fell short of our values and expectations,” said CEO Dave Calhoun. “This resolution is a serious reminder to all of us of how critical our obligation of transparency to regulators is, and the consequences that our company can face if any one of us falls short of those expectations.”
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