Boeing Co pleads not guilty in 737Max crash fraud case

Boeing Co has pleaded not guilty to misleading federal regulators over changes to its 737Max flight control system that led to two horrific crashes in 2018 and 2019.
The aircraft manufacturing giant’s indictment in federal court in Fort Worth, Texas, marks the first time the company has been forced to respond publicly to a disaster-related criminal charge. Two years ago, Boeing reached a controversial deferred prosecution agreement with the government that granted the company legal immunity.
Mike Delaney, Boeing’s chief security officer, pleaded on behalf of the company on Thursday, telling U.S. District Judge Reed O’Connor that Boeing stands by its admissions of wrongdoing expressed in its agreement with the U.S. Department of Justice, even though He challenges the pending felony charge. The not-guilty plea could put the company at risk of violating the prior agreement, which prohibited it from denying its role in covering up problems with the Federal Aviation Administration’s 737Max flight-control system.
Thursday’s indictment was a hard-fought victory for relatives of those killed in the 737Max crashes, who have spent the past year fighting to unwind the deferred prosecution agreement and have their voices heard. Lawyers for the families say they were caught off guard by the 2021 deal and were not consulted on its terms.
O’Connor sided with relatives in October, declaring them victims of legal crimes and saying they should have been part of conversations with federal prosecutors about the deal. The families of the 10 victims of the accident were to speak in person at the hearing. They are expected to speak in court about the acute emotional and financial hardship they suffered as a result of Boeing’s behavior.
The 2021 deal resolved an investigation into Boeing’s role in crashes that killed 346 people and forced the company to admit conduct that would support a charge of conspiracy to defraud the United States.

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