Justice Department reaches deal to allow Boeing to avoid prosecution
over 737 Max crashes
[May 24, 2025]
By ALANNA DURKIN RICHER
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.
“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.
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.”
[to top of second column]
|
“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.
The Justice Department charged Boeing in 2021 with deceiving FAA
regulators about the software, which did not exist in older 737s,
and about how much training pilots would need to fly the plane
safely. The department agreed not to prosecute Boeing at the time,
however, if the company paid a $2.5 billion settlement, including
the $243.6 million fine, and took steps to comply with anti-fraud
laws for three years.
Federal prosecutors, however, last year said Boeing violated the
terms of the 2021 agreement by failing to make promised changes to
detect and prevent violations of federal anti-fraud laws. Boeing
agreed last July to plead guilty to the felony fraud charge instead
of enduring a potentially lengthy public trial.
But in December, U.S. District Judge Reed O’Connor in Fort Worth
rejected the plea deal. The judge said the diversity, inclusion and
equity, or DEI, policies in the government and at Boeing could
result in race being a factor in picking a monitor to oversee
Boeing’s compliance with the agreement.
The plea deal had called for an independent monitor to be named to
oversee Boeing’s safety and quality procedures for three years.
Under the agreement announced Friday, Boeing must retain an
“independent compliance consultant” who will make recommendations
for “further improvement” and report back to the government,
according to court papers.
All contents © copyright 2025 Associated Press. All rights reserved |
