DOJ Cuts Deal With Boeing To Avoid Criminal Prosecution In 737 MAX Fraud Case

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DOJ Cuts Deal With Boeing To Avoid Criminal Prosecution In 737 MAX Fraud Case

Boeing aircraft (File)
Boeing aircraft

The U.S. Department of Justice (DOJ) has reached an agreement in principle with Boeing that will allow the aerospace giant to avoid criminal prosecution for misleading regulators about the 737 MAX jetliner.

The charges stemmed from events preceding two catastrophic crashes of the aircraft that claimed a total of 346 lives.

If the agreement is approved by a court, the DOJ will dismiss the criminal case against Boeing. Under the terms, the families of the victims will reportedly have no right to intervene in the dismissal.

The settlement, detailed in court filings released Friday, requires Boeing to pay a substantial $243.6 million fine and an additional $444.5 million to the families of the crash victims from Lion Air Flight 610 in October 2018 and Ethiopian Airlines Flight 302 in March 2019.

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While some family members expressed a desire for closure through the settlement, the agreement has drawn sharp condemnation from public advocacy groups.

Robert Weissman, co-president of Public Citizen, released a scathing statement: “This proposed deal is unfathomable and unconscionable. Boeing already agreed to plead guilty in a sweetheart deal that let it off easy for wrongdoing that led to the needless deaths of hundreds of human beings. Now, the Trump administration is permitting Boeing to withdraw its guilty plea in a deal in which it essentially just agrees not to break the law in the future. This comes even as, under the deal, Boeing ‘will admit to conspiracy to obstruct and impede the lawful operation of the Federal Aviation Administration Aircraft Evaluation Group.’

“This deal is not a slap on the wrist; it’s barely a feather on the wrist. “The deal marks one of the most shocking lapses of criminal enforcement against a major corporation in memory. The Trump administration touts how it is tough on crime, but when it comes to the world’s most powerful institutions, it is an all-time patsy.

“The Boeing gift does not occur in a vacuum. The Trump administration has already halted or dropped more than 130 civil and criminal cases against corporations since taking office; and it has promised a policy in which future corporate criminal prosecutions will be exceedingly rare.”

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As part of the settlement, Boeing board members will still be mandated to meet with the affected families. These meetings are intended to allow families to share their perspectives on “the impact of the Company’s conduct, as well as the Company’s compliance, safety, and quality programs,” the court filing detailed. An official motion to dismiss the criminal charge is anticipated within the next week.

The original fraud charge stemmed from a 2021 Deferred Prosecution Agreement (DPA) where Boeing was accused of defrauding the Federal Aviation Administration (FAA) concerning the 737 MAX. That DPA required Boeing to pay $2.5 billion, which included $500 million to victims’ families, $1.7 billion to airline customers, and a $243.6 million criminal penalty.

The DOJ moved to this new agreement after determining in May 2024 that Boeing had breached the terms of the 2021 DPA by allegedly failing to implement an ethics and compliance program designed to prevent and detect fraud. This latest development follows earlier legal proceedings, including a rejected plea deal in December 2024.

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