Company Will Avoid Criminal Charges, Admit No Wrongdoing

We didn't do anything wrong... and you can't say we did... but we'll still pay you over half a billion dollars to put the whole thing behind us. That, essentially, is the agreement Boeing has reportedly reached with the US Justice Department over past procurement violations -- and it's a deal that will cost the aerospace manufacturer some big bucks.

The Wall Street Journal reported on its website Monday that Boeing will soon pay $565 million in civil claims, and another $50 million to settle criminal charges brought against the company. Under terms of the settlement, Boeing will admit no wrongdoing, and will avoid all criminal charges.

As Aero-News reported last month, those charges stem from Boeing's alleged illegal appropriation of proprietary rocket designs from Lockheed Martin, as well as from government investigations into the company's recruitment of US Air Force weapons buyer Darleen Druyen while she still had an oversight role over a $23.5 million aerial tanker competition -- that, coincidentally, went to Boeing, before it was tossed out.

At a time when Boeing is enjoying brisk sales of its commercial airliners -- and is struggling to win and retain key defense contracts -- legal observers say Boeing is eager to put any of its past missteps behind it, and now is going above and beyond to demonstrate it is a responsible company.

Last week's move by Boeing to name J. Michael Luttig, a respected US Appeals Court judge, as the company's chief lawyer, couldn't hurt that image.

FMI: www.boeing.com