Boeing 737 Max Crash Victim Families Call For $25B Fine As CEO Dave Calhoun Gets Grilled By Senators

In the wake of two fatal 737 Max crashes, the victims’ families are calling on the Justice Department to impose a fine of nearly $25 billion on Boeing Co. BA. The families have described the incident as “the deadliest corporate crime in U.S. history.”

What Happened: The families’ attorney, Paul Cassell, argues that the proposed fine is “legally justified and clearly appropriate,” Bloomberg reported on Thursday. Cassell, who is representing 15 victims’ families, suggested that $14 billion to $22 billion of the total fine could be suspended if Boeing allocates those funds to an independent corporate monitor and enhancements to its safety programs.

The demand comes a day after Boeing CEO Dave Calhoun publicly apologized to the bereaved relatives during a Senate hearing. Boeing has been under increased scrutiny following a near-catastrophe in January when a fuselage panel on a 737 Max blew off mid-flight.

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The DOJ, which has until July 7 to decide on Boeing’s punishment, is considering various options including criminal charges or a new deal with additional conditions. The families also urged the DOJ to prosecute Boeing executives who were in the company at the time of the crashes.

Why It Matters: The demand for a hefty fine comes amid growing concerns over Boeing’s leadership. Former United Airlines CEO Oscar Munoz criticized the lack of trust in Boeing’s leadership following a Congressional hearing where Boeing's CEO, David Calhoun, was grilled by lawmakers. This lack of trust, Munoz suggested, could impact Boeing's market share.

Boeing’s CEO had previously testified before the Homeland Security & Government Affairs subcommittee on investigations, acknowledging the company’s shortcomings. Subcommittee chairman Sen. Richard Blumenthal (D-Conn.) described this as a “moment of reckoning” for Boeing.

Price Action: Boeing’s stock was trading at $174.50 on Thursday’s pre-market after it closed at $174.99, according to Benzinga Pro.

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This story was generated using Benzinga Neuro and edited by Pooja Rajkumari