Boeing Co (NYSE:BA), amid scrutiny, reportedly stated to the U.S. Justice Department that it complied with a 2021 agreement designed to avoid criminal prosecution after the 737 MAX tragedies that resulted in 346 deaths.
This assertion counters a recent governmental finding that accused the aerospace giant of failing to adhere to the terms.
According to the latest evaluations by the U.S. Justice Department in May, Boeing did not meet the criteria of designing and implementing a sufficient compliance and ethics program.
The program was crucial to detecting and preventing violations of U.S. fraud laws within its operations, according to a report from Reuters.
A spokesperson from Boeing emphasized the company’s commitment to transparent engagement throughout the agreement’s duration, per the report.
Also Read: Boeing’s 737 MAX Production Freeze Remains As FAA Demands Safety Overhaul
Recent developments have indicated that while Boeing executives might avoid criminal charges due to statute limitations, the Justice Department maintains until July 7 to outline their prosecutorial plans.
These could range from launching a criminal case to extending the deferred prosecution agreement, which would delay any immediate legal action against the company.
Earlier statements from Boeing have expressed confidence in their fulfillment of the deferred prosecution agreement’s terms and anticipate a constructive response to the Justice Department’s inquiries.
In January, an incident involving Alaska Airlines 737 MAX prompted a new investigation, raising fresh concerns about Boeing’s safety culture.
Boeing stock has lost more than 17% in the last 12 months. Investors can gain exposure to the stock via IShares U.S. Aerospace & Defense ETF (BATS:ITA) and Invesco Aerospace & Defense ETF (NYSE:PPA).
Price Action: BA shares closed lower by 1.53% at $182.67 on Wednesday.
Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.
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