Boeing and the Department of Justice requested a U.S. judge on Wednesday, July 2nd, to approve an agreement that would allow the company to avoid prosecution for the two 737 MAX crashes in 2018 and 2019, but the deal faced opposition from some relatives of the 346 victims of the crashes.
If approved by the judge, the agreement would enable Boeing to sidestep being labeled as a felon and evade oversight by an independent monitor for three years.
The independent monitor is part of a plea agreement Boeing reached in 2024 to settle a criminal fraud charge, alleging that the company misled U.S. regulators on a crucial flight control system on its best-selling jet, the 737 MAX.
Boeing argued that only the executive branch has the authority to decide whether to bring or maintain charges. Boeing stated, “Since the decision to prosecute is entirely within the government’s discretion, an agreement to decline prosecution does not require court approval,” therefore requesting the judge to reject the opposition from the families of the crash victims and approve the government’s motion to dismiss the charges.
Boeing claimed that the families’ dispute regarding “the government’s assessment of litigation risks, the calculation of maximum fines, or appropriate mechanisms for compliance oversight” does not prove, or even come close to proving, that the government’s considerations are “contrary to the public interest.”
In a court filing, the Department of Justice stated that it acted in good faith and agreed to dismiss the case to reach an agreement that ensures “substantial fines, improvement of compliance, and establishment of a substantial victim compensation fund.”
The families of the victims cited a statement by Judge Reed O’Connor in 2023, saying, “Boeing’s misconduct could be considered the deadliest corporate crime in American history.”
They argued that dismissing the lawsuit is not in the public interest, and the obligations imposed on Boeing cannot be fulfilled.
The families stated that even if the deal is rejected by the court, Judge O’Connor should appoint a special prosecutor if the government refuses to continue with the prosecution.
Both Boeing and the Department of Justice requested for O’Connor to reject the appointment of a special prosecutor.
According to the agreement, Boeing agreed to pay an additional $4.445 billion to a fund for the victims of the plane crashes, on top of a new $2.436 billion fine, to be evenly distributed among each victim of the crashes.
Following two fatal 737 MAX crashes in Indonesia and Ethiopia, Boeing agreed in July 2024 to admit to criminal charges of conspiracy to defraud.
Under the agreement not to prosecute, Boeing will pay a total of $11 billion in fines, including penalties, compensation to families, and over $455 million for enhancing the company’s compliance, safety, and quality programs.
The Department of Justice stated that the vast majority of families have reached civil settlements with Boeing, receiving a total of “billions of dollars in compensation.”
(This article references Reuters)