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Investing.com -- Boeing (NYSE:BA) is currently in talks with the U.S. Department of Justice (DOJ) to revise a plea agreement in a criminal fraud case. The case is related to the alleged misrepresentations by the aerospace manufacturer about a crucial system on the 737 MAX, as stated by company CEO Kelly Ortberg on Wednesday.
The discussions with the DOJ are aimed at formulating an alternate agreement, as the initial deal was not approved by a judge. Ortberg expressed his desire for a swift resolution during a Senate hearing, expressing optimism for a new agreement in the near future.
In July, Boeing agreed to admit guilt to a criminal fraud conspiracy charge following two fatal 737 MAX crashes. The company consented to pay a penalty of up to $487.2 million. If no final agreement is reached, a trial has been set for June 23.
The plea deal Boeing agreed to last year included a commitment of $455 million towards the improvement of safety and compliance practices over a three-year probation period. This period would be supervised by the court and monitored by an independent entity.
Family members of the victims of the two 737 MAX crashes, which took place in 2018 and 2019 and resulted in 346 fatalities, have criticized the plea agreement. They argue that it does not sufficiently hold Boeing responsible for the loss of their loved ones.
If the plea deal is accepted, Boeing would be labeled a convicted felon for conspiring to defraud the Federal Aviation Administration. The fraud pertains to problematic software affecting the flight control systems in the planes that crashed during the MAX’s certification process.
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