Boeing (BA) could be subject to criminal prosecution and a fine of $25bn, according to the attorney representing families of the victims of its fatal crashes. Paul Cassell is acting on behalf of the families of 15 of the victims of the Boeing 737 MAX 8 crashes that occurred in Indonesia and Ethiopia.
Boeing Facing Calls For $25bn Fine
He wrote a letter to the US Department of Justice in which he suggested that the $25bn fine is legally justified and clearly appropriate for what he called “the deadliest corporate crime in US history”. However, Cassell went on to say that the figure could be lower if Boeing boosts its safety measures and agrees to an independent monitor.
Dave Calhoun, the CEO of Boeing, said at a Senate hearing held in Washington DC that the company is deeply sorry for the loss of life. The two accidents claimed 346 victims and led senators to tell Boeing that its safety culture was broken and needed to be fixed. In both cases, the accidents were related to faults in the anti-stall system, which pilots hadn’t been shown how to operate.
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While those accidents occurred in 2018 and 2019, a door also got blown off a 737 MAX earlier this year. This led to renewed calls to fine the aviation company, which so far has been protected by a non-prosecution agreement covering both 737 MAX crashes.
The BA share price has dropped by a third in 2024, with warnings that it could burn through as much as $8bn in cash reserves in the first six months of the year.
