How Boeing may dodge criminal charges over 737 MAX crashes
What's the story
The US Department of Justice (DOJ) has reached a tentative deal with Boeing, potentially allowing the aerospace giant to escape criminal charges over the two fatal crashes of its 737 MAX jetliner.
The proposed settlement, still pending finalization, would require Boeing to pay or invest over $1.1 billion. This includes an additional $445 million for the families of crash victims.
In return, the department agreed to dismiss fraud charges against Boeing.
Protection
Agreement protects Boeing's federal contractor status
The in-principle deal will shield Boeing from a possible criminal conviction that may have put its federal contractor status at risk.
A Justice Department spokesperson said, "Ultimately, in applying the facts, the law, and Department policy, we are confident that this resolution is the most just outcome with practical benefits."
He went on to say that while "nothing will diminish the victims' losses," this resolution makes Boeing financially accountable and affects future air travelers' safety.
Mixed responses
Families of crash victims express mixed reactions
Some families of the passengers who lost their lives in the crashes have been pushing for a public trial and harsher penalties for Boeing.
Paul Cassell, an attorney representing many of these families, slammed the non-prosecution deal as "unprecedented and obviously wrong for the deadliest corporate crime in US history."
Javier de Luis, whose sister died in one crash, accused the Justice Department of abandoning "any pretense to seek justice for the victims of the 737 MAX crashes."
Allegations
Charges against Boeing and the 737 MAX
Boeing was accused of misleading the Federal Aviation Administration (FAA) over certain aspects of the 737 MAX prior to its certification for flight.
The company failed to inform airlines and pilots about a new software system, MCAS, which could autonomously lower the plane's nose if a sensor detected an imminent aerodynamic stall.
The 737 MAX jets were grounded worldwide after two crashes due to erroneous sensor readings that led to loss of control by pilots.
Legal history
Previous settlement and agreement violations
In 2021, the Justice Department accused Boeing of misleading FAA regulators regarding the software and training needed to operate the aircraft safely.
The company escaped prosecution then by accepting a $2.5 billion settlement, including a $243.6 million fine, and agreeing to abide by anti-fraud laws for three years.
However, prosecutors later alleged that Boeing violated the deal by not implementing promised changes to prevent violations of federal anti-fraud laws.
Compliance oversight
Proposed settlement requires independent compliance consultant
Under the new agreement proposed by the Justice Department, Boeing must retain an "independent compliance consultant" who will provide recommendations for further improvement and report back to the government.
This comes after US District Judge Reed O'Connor rejected a plea deal in December, citing potential racial bias in selecting a monitor to oversee Boeing's compliance with the agreement.
The tentative agreement will be finalized after further discussions between both parties involved.