737 Max Boeing. American corporation admits guilt in aircraft case

The aerospace giant has pleaded guilty to conspiring to defraud the Federal Aviation Administration after prosecutors said the planemaker knowingly made false statements about the 737 MAX's software.

Under the court agreement, Boeing will be considered a criminal. However, it will avoid trial, which could make it easier to try to get out of the production crisis.

Boeing was fined $487.2 million. The Justice Department recommended that the court include half of the amount the company had already paid. That would mean the company would now have to pay an additional $244 million.

The agreement requires approval from a federal judge to go into effect.

Before Judge Reed O'Connor decides whether to accept the deal and determine whether Boeing owes compensation to the families of the 346 people who died in the twin 737 MAX crashes in 2018 and 2019, the relatives will have the opportunity to object to the terms of the agreement.

CNBC notes that Boeing's criminal designation could complicate the company's ability to sell its products to the government. USAAbout 32 percent of Boeing's nearly $78 billion in revenue last year came from defense, space and security products.

The agreement puts an independent watchdog in place to monitor Boeing for three years. It will also have to invest at least $455 million in safety programs. The company also agreed to let its board meet with the families of the crash victims.

The Justice Department announced the deal months after federal prosecutors said the aerospace giant violated a 2021 settlement that shielded it from prosecution for three years.

“We can confirm that we have reached an agreement on principle regarding the terms of the settlement with the Department of Justice, if formalized and approved,” Boeing said in a statement after filing court papers.