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Lessons from Boeing’s plea deal: DPA non-compliance carries consequences, enhanced monitoring, reputational exposure and whistleblower pressure; practical pointers for corporate counsel and SFO/CPS practitioners.

Published on: 23 July 2024

Published by a Law360 reporter
Legal News
Article summary

Under a plea agreement lodged with the US District Court for the Northern District of Texas, and pending judicial approval, Boeing would pay an additional $US243.6m in fines, commit $US455m to bolstering safety and compliance, and place itself under independent oversight for three years. A hearing had been slated for last week; however, federal prosecutors sought extra time to finalise the proposal’s details. The move follows Boeing’s failure to honour the terms of the deferred prosecution agreement (DPA) it reached with prosecutors in 2021. Under that pact, the company paid over $US2.5bn in penalties and compensation to victims’ families, acknowledging responsibility for two 737 Max crashes in Indonesia (2018) and Ethiopia (2019) that together claimed 346 lives. Boeing was additionally placed under three years of supervision, during which it was, inter alia, to ‘design, implement, and enforce a compliance and ethics programme to prevent and detect violations of the US fraud laws throughout its operations’. That term has now expired, and federal prosecutors have determined that Boeing did not meet those requirements...

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