Has Boeing Avoided Prosecution for the 737 Max Crashes?

Synopsis
Key Takeaways
- Boeing has avoided prosecution through a non-prosecution agreement with the DOJ.
- Over 1.1 billion dollars will be allocated for fines and victim support.
- The agreement seeks to provide immediate benefits to affected families.
- Past agreements have been criticized as insufficient for holding Boeing accountable.
- Corporate transparency and accountability remain critical issues moving forward.
Washington, May 24 (NationPress) The US Department of Justice (DOJ) has confirmed that it has reached a non-prosecution agreement with Boeing regarding the two tragic crashes of its 737 Max aircraft, which resulted in a total of 346 fatalities.
In a recent court filing in Texas, the DOJ characterized the agreement as "a fair and just resolution that benefits the public interest," highlighting that it guarantees immediate accountability and significant advantages for the families affected, while avoiding the unpredictability and risks associated with litigation.
As part of this deal, Boeing will evade a felony conviction and the impending trial set for next month, as reported by Xinhua news agency.
Boeing is required to pay or invest over 1.1 billion US dollars, as detailed in the filing.
This figure includes a criminal fine of 487.2 million dollars and credits a 243.6-million-dollar fine already paid under a previous agreement. It also includes 444.5 million dollars for a new fund dedicated to crash victims, alongside 445 million dollars to enhance compliance, safety, and quality programs.
Following the fatal incidents, Boeing faced accusations of conspiring to defraud regulators by withholding essential information regarding the flight-control system of the 737 Max, which was involved in both crashes.
In 2021, the company entered into a deferred prosecution agreement to avert prosecution, resulting in a total payment of 2.51 billion dollars that included a 243.6-million-dollar criminal penalty, 500 million dollars for victims' families, and 1.77 billion dollars in compensation to airline customers.
"Boeing’s employees opted for profit over transparency by concealing critical information from the FAA regarding the operation of its 737 Max aircraft and attempting to cover up their deception," remarked then-acting Assistant Attorney General David Burns of the DOJ's Criminal Division after the 2021 deferred prosecution agreement.
The 2021 settlement was set to expire just two days after an incident involving a door panel blowing out of a nearly new 737 Max 9 operated by Alaska Airlines on January 5, 2024, after the aircraft left Boeing's factory without essential bolts.
Following this incident, prosecutors claimed that Boeing had violated its 2021 settlement by failing to implement an effective compliance and ethics program.
In July 2024, Boeing consented to plead guilty to a criminal fraud charge under a revised settlement that could incur a fine of 487.2 million dollars.
Lawyers representing victims' families criticized the preliminary plea deal, likening it to a mere slap on the wrist for the corporate giant.
A federal judge ultimately turned down the plea agreement due to concerns regarding diversity, equity, and inclusion criteria for selecting the corporate monitor.
Families of the crash victims have condemned past agreements as excessively lenient, demanding stricter accountability and calling for Boeing’s executives to stand trial.