Boeing to settle federal suits for $615 million: WSJ

NEW YORK (Reuters) – Boeing Co. plans to pay $615 million
to settle a U.S. Justice Department suit over procurement
violations, according to a report on the Wall Street Journal’s
Web site on Monday.

As part of the settlement, Boeing will avoid criminal
charges and admit no wrongdoing, according to the Journal
report, citing unnamed sources.

The deal calls for Boeing to pay $565 million to cover
civil claims and $50 million to resolve criminal
investigations, the Journal said.

The Chicago-based defense contractor has been the subject
of government investigations into the recruitment of a U.S. Air
Force weapons buyer while she still had oversight of the
billions of dollars in Boeing contracts, and the appropriation
of secret information on Lockheed Martin Corp. rocket programs.

The admission of no wrongdoing could make it harder for
Lockheed to seek pending civil claims for damages, the report
said.

In April, Boeing Chief Financial Officer James Bell said
the company was working with federal authorities, but denied
reports that a settlement was imminent.

Last week, Boeing named prominent U.S. appeals court judge
J. Michael Luttig as its head lawyer, in a move seen by legal
observers as another step toward demonstrating it is a
responsible contractor.

Scandals at Boeing have led to an executive reorganization
and the departure of two chief executives.

Current CEO James McNerney was appointed last June.