Boeing, Justice Department reach deal to avoid prosecution over deadly 737 Max crashes
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Boeing, Justice Department reach deal to avoid prosecution over deadly 737 Max crashes
U.S. Justice Department says it has reached a deal with Boeing over two 737 Max crashes. The decision means Boeing won’t face trial as scheduled next month, as crash victims’ family members have urged. Boeing will have to “pay or invest” more than $1.1 billion, the DOJ says in a court filing. The company has been trying for years to put the two crashes of its best-selling Max planes behind it, but it hasn’t been able to reach a settlement with the government.. In 2022, a former chief technical pilot for Boeing was acquitted on fraud charges tied to the Max’s development. In 2021, Boeing agreed to pay a $2.51 billion fine to avoid prosecution, including a $243.6 million criminal penalty, a $500 million fund for crash victims’ family members and $1,77 billion for its airline customers. But last year, prosecutors said Boeing violated the 2021 settlement, accusing the company of failing to set up and enforce a compliance and ethics program.
The non-prosecution agreement would allow Boeing, a major military contractor and top U.S. exporter, to avoid being labeled a felon. The decision means Boeing won’t face trial as scheduled next month, as crash victims’ family members have urged for years.
The Department of Justice met with crash victims’ family members last week to discuss the potential deal.
In a court filing Friday the DOJ said it “is the Government’s judgment that the Agreement is a fair and just resolution that serves the public interest.”
The agreement “guarantees further accountability and substantial benefits from Boeing immediately, while avoiding the uncertainty and litigation risk presented by proceeding to trial.”
The DOJ said it intends to file a motion to dismiss the case once the “agreement in principle” is finalized, by no later than the end of next week.
Under the agreement, Boeing will have to “pay or invest” more than $1.1 billion, the DOJ said in its filing in federal court in Texas on Friday. That amount includes a $487.2 million criminal fine, though $243.6 million it already paid in an earlier agreement would be credited. It also includes $444.5 million for a new fund for crash victims, and $445 million more on compliance, safety and quality programs.
Boeing declined to comment.
The company has been trying for years to put the two crashes of its best-selling Max planes — a Lion Air flight in October 2018 and an Ethiopian Airlines flight less than five months later — behind it. The Maxes were grounded worldwide for nearly two years after the second crash, a pause that gave rival Airbus a head start in recovering from the Covid pandemic.
But families of the crash victims have criticized previous agreements as sweetheart deals for Boeing, called for more accountability from the company and said its executives should stand trial. In 2022, a former chief technical pilot for Boeing was acquitted on fraud charges tied to the Max’s development.
Several of the victims’ family members issued a statement through their lawyer shortly after the court filing was released criticizing the deal and saying it set a troubling precedent for other large companies.
“This kind of non-prosecution deal is unprecedented and obviously wrong for the deadliest corporate crime in U.S. history. My families will object and hope to convince the court to reject it,” said the families’ lawyer, Paul Cassell.
The Justice Department said relatives of more than 110 crash victims told the government they support the non-prosecution agreement or “support the Department’s efforts to resolve the case pre-trial more generally,” but added that others said they want the U.S. to take Boeing to trial and that they would litigate to dismiss the deal.
The aerospace giant reached a settlement in 2021 in the final days of the first Trump administration that shielded it from prosecution for three years.
Under that deal, Boeing agreed to pay a $2.51 billion fine to avoid prosecution. That included a $243.6 million criminal penalty, a $500 million fund for crash victims’ family members and $1.77 billion for its airline customers. The new fund will be on top of the $500 million that was already established.
That 2021 settlement was set to expire two days after a door panel blew out of a nearly new 737 Max 9 operated by Alaska Airlines on Jan. 5, 2024, after the aircraft left Boeing’s factory without key bolts installed.
But last year, U.S. prosecutors said Boeing violated the 2021 settlement, accusing the company of failing to set up and enforce a compliance and ethics program to detect violations of U.S. fraud laws.
Last July, toward the end of the Biden administration, Boeing agreed to plead guilty to the criminal fraud charge in a new settlement. A federal judge later rejected the plea deal, citing concerns with diversity, equity and inclusion requirements for choosing a corporate monitor.
Under that 2024 deal, Boeing would have faced a fine of up to $487.2 million, though the Justice Department recommended that the court credit Boeing with half that amount it paid under the previous agreement.
The U.S. had accused Boeing of conspiracy to defraud the government by misleading regulators about its inclusion of a flight-control system on the Max that was later implicated in the two crashes.
“Boeing’s employees chose the path of profit over candor by concealing material information from the FAA concerning the operation of its 737 Max airplane and engaging in an effort to cover up their deception,” then-acting Assistant Attorney General David Burns of the Justice Department’s Criminal Division said at the time of the 2021 deferred prosecution agreement.
Messages revealed in an investigation into the Max’s development showed the former top Boeing pilot who was found not guilty of fraud in 2022, Mark Forkner, told the FAA to delete the flight-control system known as MCAS from manuals and, in a separate email, he boasted about “jedi-mind tricking” regulators into approving the training material.
Lawyers for victims’ family members railed against last year’s preliminary plea deal, equating it to a slap on the wrist for the corporate giant, which recently won a contract worth billions to build the next-generation fighter jet and works on other military programs including outfitting two new presidential jets.
Justice Department reaches tentative non-prosecution deal with Boeing over 737 Max crashes
The US Justice Department struck a deal with Boeing that would allow the planemaker to avoid criminal prosecution in a fraud case related to two 737 Max jetliner crashes that killed 346 people over five years ago. Under the tentative deal, the aerospace giant would pay more than $1.1 billion (€967.5 million) to the crash victims’ families, and an additional $445 million (€391 million) in return. In return, the DOJ agreed to dismiss the fraud case against Boeing. The verdict comes as a blow to some of the victims’ Families, who believe the monetary fine could send a wrong signal to companies on accountability.
The US Justice Department (DOJ) struck a deal with Boeing that would allow the planemaker to avoid criminal prosecution in a fraud case related to two 737 Max jetliner crashes that killed 346 people over five years ago.
Under the tentative deal, the aerospace giant would pay more than $1.1 billion (€967.5 million), and an additional $445 million (€391 million) to the crash victims’ families.
In return, the DOJ agreed to dismiss a fraud case against Boeing, allowing the planemaker to avoid a criminal conviction that could jeopardise its status as a federal contractor.
“We are confident that this resolution is the most just outcome with practical benefits,” a Justice Department spokesperson said in a statement.
“Nothing will diminish the victims’ losses, but this resolution holds Boeing financially accountable, provides finality and compensation for the families and makes an impact for the safety of future air travelers,” they added.
However, the verdict comes as a blow to some of the victims’ families, who believe the monetary fine could send a wrong signal to companies on accountability regarding the safety of their products.
Some relatives of passengers in the crashes have been pushing for a public trial, the prosecution of former company officials, and a more severe financial punishment for Boeing.
“This kind of non-prosecution deal is unprecedented and obviously wrong for the deadliest corporate crime in US history,” said Paul Cassell, an attorney on the case, adding that the families he repesents will object and try to convince the court to reject the deal.
Two new 737 Max jets crashed in 2018 in Indonesia and 2019 in Ethiopia, killing 346 people after a faulty sensor reading forced the plane into an uncontrollable nosedive.
Workers recover debris at the scene of an Ethiopian Airlines Boeing Max plane crash on March 11, 2019, outside of Addis Ababa, Ethiopia. AP Photo/Mulugeta Ayene, File
Boeing was accused of misleading the Federal Aviation Administration about aspects of the Max before the agency certified the plane for flight.
The planemaker did not tell airlines and pilots about the new software system, called MCAS, that could turn the plane’s nose down without input from pilots if a sensor detected that the plane might go into an aerodynamic stall.
The DOJ had already charged Boeing in 2021 with deceiving FAA regulators about the software, and about how much training pilots needed to fly the plane safely. At the time, the aerospace giant was let off the hook after they agreed to pay a $2.5 billion (€2.2 billion) settlement and took steps to comply with anti-fraud laws for three years.
After federal prosecutors found Boeing did not comply with the agreement and failed to make the promised changes, the plane manufacturer agreed to plead guilty to the criminal fraud charge to avoid a potentially lengthy public trial.
But in December, a federal judge rejected the plea deal citing concerns with diversity, inclusion and equity requirements when picking a monitor to oversee Boeing’s compliance.
US, Boeing Reach Deal To Resolve MAX Criminal Case
The Justice Department says it reached a preliminary agreement with Boeing to settle a long-running criminal probe. Boeing will pay $1.1 billion and the Department of Justice would dismiss a criminal charge against Boeing. A judge must approve the accord, which would scuttle a criminal trial scheduled for June in Fort Worth, Texas. The agreement would resolve the case without requiring Boeing to plead guilty to fraud in the certification of the MAX, which was involved in two crashes in 2018 and 2019 that claimed 346 lives.. Senator Richard Blumenthal, a Connecticut Democrat who held hearings into Boeing’s problems in 2024, condemned the agreement as an “outrageous injustice” to victims and the public. “Victims, families, and the flying public deserve better,” Blumenthal said.
Under an “agreement in principle,” Boeing will pay $1.1 billion and the Department of Justice (DOJ) would dismiss a criminal charge against Boeing over its conduct in the certification of the MAX, DOJ said in a federal filing.
A judge must approve the accord, which would scuttle a criminal trial scheduled for June in Fort Worth, Texas.
The agreement would resolve the case without requiring Boeing to plead guilty to fraud in the certification of the MAX, which was involved in two crashes in 2018 and 2019 that claimed 346 lives.
Family members of some MAX victims slammed the proposed settlement as a giveaway to Boeing.
“The message sent by this action to companies around the country is, don’t worry about making your products safe for your customers,” said Javier de Luis in a statement released by attorneys for plaintiffs suing Boeing.
“This kind of non-prosecution deal is unprecedented and obviously wrong for the deadliest corporate crime in US history,” said Paul Cassell, an attorney representing relatives of victims. “My families will object and hope to convince the court to reject it.”
But the DOJ, in its brief, cited other family members who expressed a desire for closure, quoting one who said “the grief resurfaces every time this case is discussed in court or other forums.”
Family members of more than 110 crash victims told the government “they either support the Agreement specifically, support the Department’s efforts to resolve the case pre-trial more generally or do not oppose the agreement,” the filing said.
The DOJ filing called the accord “a fair and just resolution that serves the public interest.”
“The Agreement guarantees further accountability and substantial benefits from Boeing immediately, while avoiding the uncertainty and litigation risk presented by proceeding to trial,” it said.
Boeing declined to comment when contacted by AFP.
Friday’s proposed agreement marks the latest development in a marathon case that came in the wake of the two crashes that tarnished Boeing’s reputation and contributed to leadership shakeups at the aviation giant.
The case dates to a January 2021 DOJ agreement with Boeing that settled charges that the company knowingly defrauded the Federal Aviation Administration during the MAX certification.
The 2021 accord included a three-year probation period. But in May 2024, the DOJ determined that Boeing had violated the 2021 accord following a number of subsequent safety lapses.
Boeing agreed in July 2024 to plead guilty to “conspiracy to defraud the United States.”
But in December, federal judge Reed O’Connor rejected a settlement codifying the guilty plea, setting the stage for the incoming Trump administration to decide the next steps.
Under Friday’s proposed accord, Boeing “will admit to conspiracy to obstruct and impede the lawful operation of the Federal Aviation Administration Aircraft Evaluation Group.”
But this acknowledgment “doesn’t carry any criminal penalties,” said Carl Tobias, a professor at the University of Richmond School of Law.
“You don’t have that kind of stigma or retribution or whatever it is that we think of as deterring that behavior,” Tobias said. “It’s a slap on the wrist.”
Senator Richard Blumenthal, a Connecticut Democrat who held hearings into Boeing’s problems in 2024, condemned the agreement as an “outrageous injustice” to victims and the public.
“After repeatedly rebuffing responsibility and lying, Boeing will now permanently escape accountability,” Blumenthal said. “Victims, families, and the flying public deserve better. They deserve justice, not this sham.”
Boeing reaches deal with Justice Department to avoid prosecution over 737 Max crashes
Boeing reaches deal with Justice Department to avoid prosecution over 737 Max crashes. Under the agreement, Boeing would pay or invest more than $1.1 billion, including an additional $445 million for the crash victims’ families. In return, the department has agreed to dismiss the fraud charge against Boeing, allowing the manufacturer to avoid a possible criminal conviction that could have jeopardized the company’s status as a federal contractor. “This kind of non-prosecution deal is unprecedented and obviously wrong for the deadliest corporate crime in U.S. history,” said Paul Cassell, an attorney for many of the families in the long-running case.
WASHINGTON (AP) — The Justice Department has reached a deal with Boeing that will allow the airplane giant to avoid criminal prosecution for allegedly misleading U.S. regulators about the 737 Max jetliner before two of the planes crashed and killed 346 people, according to court papers filed Friday. Under the “agreement in principle,” which still needs to be finalized, Boeing would pay or invest more than $1.1 billion, including an additional $445 million for the crash victims’ families, the Justice Department said. In return, the department has agreed to dismiss the fraud charge against Boeing, allowing the manufacturer to avoid a possible criminal conviction that could have jeopardized the company’s status as a federal contractor, according to experts. RELATED: DOJ may drop case against Boeing over deadly 737 Max crashes, despite families’ outrage “Ultimately, in applying the facts, the law, and Department policy, we are confident that this resolution is the most just outcome with practical benefits,” a Justice Department spokesperson said in a statement.
“Nothing will diminish the victims’ losses, but this resolution holds Boeing financially accountable, provides finality and compensation for the families and makes an impact for the safety of future air travelers.” Boeing on Friday declined to comment. RELATED: Boeing settles 2 wrongful death lawsuits over 2019 Ethiopian Airlines crash Some relatives of the passengers who died in the crashes, which took place off the coast of Indonesia and in Ethiopia less than five months apart in 2018 and 2019, have been pushing for a public trial, the prosecution of former company officials, and more severe financial punishment for Boeing. The Justice Department noted that the victims’ families had mixed views on the proposed deal. “This kind of non-prosecution deal is unprecedented and obviously wrong for the deadliest corporate crime in U.S. history,” said Paul Cassell, an attorney for many of the families in the long-running case. “My families will object and hope to convince the court to reject it.”
Javier de Luis, whose sister, Graziella, died in the Ethiopia crash, said the Justice Department is walking away “from any pretense to seek justice for the victims of the 737Max crashes.” RELATED: Grilled by Senate, Boeing CEO admits to ‘serious missteps’ on safety “The message sent by this action to companies around the country is, don’t worry about making your products safe for your customers,” he said in a statement. “Even if you kill them, just pay a small fine and move on.” Boeing was accused of misleading the Federal Aviation Administration about aspects of the Max before the agency certified the plane for flight. Boeing did not tell airlines and pilots about a new software system, called MCAS, that could turn the plane’s nose down without input from pilots if a sensor detected that the plane might go into an aerodynamic stall. The Max planes crashed after a faulty reading from the sensor pushed the nose down and pilots were unable to regain control. After the second crash, Max jets were grounded worldwide until the company redesigned MCAS to make it less powerful and to use signals from two sensors, not just one.
Boeing reaches deal with DOJ to avoid prosecution over 737 Max crashes
Boeing reaches deal with DOJ to avoid prosecution over 737 Max crashes. The terms of the agreement include that Boeing “will admit to conspiracy to obstruct and impede the lawful operation of the Federal Aviation Administration Aircraft Evaluation Group,” according to a DOJ status report. The agreement still has to go through the judge in the Northern District of Texas, who rejected a previous version of the deal due to a diversity, equity and inclusion provision.Lawyers representing the families of the crash victims said they hope to convince the judge to reject the agreement. The two 737 Max crash crashes killed 346 people in total, including 189 passengers and crew in Indonesia and 157 people in Ethiopia.
Boeing has reached an agreement in principle with the Department of Justice to avoid prosecution in the case over two deadly 737 Max crashes.
Boeing has reached an agreement in principle with the Department of Justice to avoid prosecution in the case over two deadly 737 Max crashes.
Boeing has reached an agreement in principle with the Department of Justice to avoid prosecution in the case over two deadly 737 Max crashes.
Boeing has reached an agreement in principle with the Department of Justice to avoid prosecution in the case over two deadly 737 Max crashes.
Boeing has reached an agreement in principle with the Department of Justice to avoid prosecution in the case over two deadly 737 Max crashes, also allowing Boeing to avoid going to trial next month, according to a new court filing.
The agreement still has to go through the judge in the Northern District of Texas, who rejected a previous version of the deal due to a
diversity, equity and inclusion provision.
The terms of the agreement include that Boeing “will admit to conspiracy to obstruct and impede the lawful operation of the Federal Aviation Administration Aircraft Evaluation Group,” according to a DOJ status report filed on Friday.
They also include that Boeing pay and invest over $1.1 billion — including $444.5 million to crash victims’ families, $455 million to strengthen Boeing’s compliance, safety and quality programs, and an additional $243.6 million fine, according to the filing.
The DOJ said it will file the motion to dismiss and the written agreement by the end of next week.
“It is the Government’s judgment that the Agreement is a fair and just resolution that serves the public interest,” the DOJ said in the filing. “The Agreement guarantees further accountability and substantial benefits from Boeing immediately, while avoiding the uncertainty and litigation risk presented by proceeding to trial.”
Lawyers representing the families of the crash victims said they hope to convince the judge to reject the agreement.
“This kind of non-prosecution deal is unprecedented and obviously wrong for the deadliest corporate crime in U.S. history,” Paul Cassell, a lawyer representing some of the families, said in a statement. “My families will object and hope to convince the court to reject it.”
The two 737 Max crashes killed 346 people in total.
The first crash, on Oct. 29, 2018, in Jakarta, Indonesia, killed all 189 passengers and crew. Black box data from the Lion Air jet revealed the pilots struggled to fight the plane’s malfunctioning safety system from takeoff to the moment it nose-dived into the water.
The second crash, on March 10, 2019, happened in Addis Ababa, Ethiopia, when a Boeing aircraft crashed minutes after takeoff and killed 157 people onboard.
The initial plea agreement over the crashes was rejected by U.S. District Judge Reed O’Connor in December 2024, who cited the government’s DEI policies as a factor in the selection of an independent compliance monitor for Boeing. Under that deal, the aircraft manufacturing giant had agreed to plead guilty to conspiracy to defraud the United States and pay a fine of at least $243 million.
Source: https://www.nbcnews.com/news/us-news/boeing-justice-department-737-max-rcna208846