Boeing says it is not guilty of fraud charge over 737 Max crashes

Boeing, on Thursday, told aUS court it was not guilty of concealing information about flight control systems on its 737 Max aircraft. Notably, two of its planes had crashed over a short period of time, killing 346 people.

Investigations revealed that flaws in the systems led to the accidents, but Boeing avoided a trial by agreeing to pay $2.5 billion. Relatives of those killed in the crashes are trying to reopen the settlement.

Earlier, relatives of people killed in two fatal 737 MAX crashes have asked a US judge to appoint an independent corporate monitor to oversee Boeing's compliance efforts with a 2021 deferred prosecution agreement.

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Boeing was ordered to appear in court on Thursday in Fort Worth, Texas, by US District Judge Reed O'Connor, to be arraigned on a felony charge last week. This came as the families of those killed in the 2018 and 2019 crashes objected to a $2.5 billion Justice Department agreement to resolve a 737 MAX fraud conspiracy charge related to the plane's flawed design.

O'Connor had ruled in October that those killed in the Boeing 737 MAX crashes are legally considered "crime victims."

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Notably, the Indonesia and Ethiopia crashes cost Boeing more than $20 billion and also led to it being grounded for 20 months. Lawmakers were also forced to pass sweeping legislation reforming airplane certification.

The families have requested for an independent monitor to oversee Boeing's compliance. It should also impose a standard condition that Boeing will not commit any new crimes and disclose publicly the substance of Boeing’s corporate compliance efforts adopted since 2021.

"Only an independent monitor, the proverbial second set of eyes, can begin to restore confidence in Boeing and ensure safety of the community," the families said.

While speaking to CNBC, Chief Executive Dave Calhoun said the plane maker did not object to the arraignment. He also expressed sympathy for the families and said their views were "a good reminder.. of how important safety is for all of us."

Boeing is likely to enter a not guilty plea on Thursday as is standard in deferred prosecution cases. The Justice Department had agreed in 2021 to seek dismissal of the charge after the three-year agreement if Boeing complies with all terms.

(With inputs from agencies)

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