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Boeing to settle the FAA with 2.5 Billion Dollars for the fraud of the 737 MAX

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The Boeing 3737 flight was grounded in March of the year 2019 after 2 fatal crashes that resulted in almost 400 casualties of civilians. It was seen that Boeing had not been entirely honest about the 733 Max’s faults to the FAA and thereby was slapped with criminal charges by the government for endangering the lives of the people. Boeing finally came to a settlement with the FAA and has agreed to pay 2.5 Billion Dollars for the fraud.

According to the government filing report on the subject it shows that the fraud has started in the year 2016 and continued to the year 2018 when the Air craft was supposed to get its final approval from the FAA.

The settlement includes a massive dollar amount to be paid out by Boeing to different parties in compensation for many things such as the credibility of the airline, the loss of loved one and defrauding a governmental institution.

“I firmly believe that entering into this resolution is the right thing for us to do — a step that appropriately acknowledges how we fell short of our values and expectations,” said Boeing CEO Dave Calhoun. “This resolution is a serious reminder to all of us of how critical our obligation of transparency to regulators is, and the consequences that our company can face if any one of us falls short of those expectations.”

The settlement itself is not seen as much compared to the financial hit Boeing took because of the negative media presence because of the situation. Victims’ families and loved one still think that the settlement is nothing but a warning for Boeing as they feel that Boeing was being money hungry and not bothered about its customers.

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