Boeing, U.S. Justice Department ask judge to approve deal allowing company to avoid prosecution

Globe and Mail

5 hours ago

Boeing BA-N and the Justice Department on Wednesday asked a U.S. judge to approve an agreement that allows the company to avoid prosecution despite objections from relatives of some of the 346 people killed in two 737 MAX crashes in 2018 and 2019.
The deal enables Boeing to avoid being branded a convicted felon and to escape oversight from an independent monitor for three years that was part of a plea deal struck in 2024 to a criminal fraud charge that it misled U.S. regulators about a crucial flight control system on the 737 MAX, its bestselling jet.
Boeing argued the executive branch solely has the power to decide whether to bring or maintain a prosecution.
'Because it is entirely within the government's discretion whether to pursue a criminal prosecution, an agreement not-to-prosecute does not require court approval,' Boeing said, asking a judge to reject objections filed by the families and grant the government's motion to dismiss the charge.
'Disputing the government's considered assessment of litigation risk, the calculation of the maximum fine, or the appropriate mechanism for compliance oversight, do not demonstrate – even remotely – that the government was clearly motivated by considerations contrary to the public interest.'
Boeing reaches deal with U.S. Justice department to avoid prosecution in 737 MAX fraud case
The Justice Department said in a court filing it acted in good faith and in accordance with the law, agreeing to dismiss the case for an agreement 'that secures a significant fine, compliance improvements, and a substantial victim compensation fund.'
The families cited Judge Reed O'Connor's statement in 2023 that 'Boeing's crime may properly be considered the deadliest corporate crime in U.S. history.'
They argue dismissal is not in the public interest and obligations imposed on Boeing are not enforceable.
If the government declined to move forward with the prosecution even if the court rejected the deal, O'Connor should appoint a special prosecutor, the families said.
Boeing and the Justice Department both asked O'Connor to reject appointing a special prosecutor.
Under the deal, Boeing agreed to pay an additional $444.5 million into a crash victims fund to be divided evenly per crash victim, on top of a new $243.6 million fine.
Boeing in July 2024 agreed to plead guilty to a criminal fraud conspiracy charge after the two fatal 737 MAX crashes in Indonesia and Ethiopia.
Under the non-prosecution agreement, Boeing will pay $1.1 billion in total, including the fine, compensation to families and more than $455 million to strengthen the company's compliance, safety and quality programs.
The vast majority of the families have settled civil suits with Boeing and collectively have been 'paid several billion dollars,' the Justice Department said.