Boeing Set To Avoid Prosecution In Twin Fatal 737 Max Crashes

Boeing has tentatively reached a nonprosecution agreement with the U.S. Justice Department to avoid a June 23 trial over allegations it misled federal regulators about a flight control system tied to two fatal 737 MAX crashes that killed 346 people in 2018 and 2019, according to Reuters, citing people familiar with the matter. 

Sources said the deal requires a judge’s approval and would allow the Seattle-based planemaker to avoid entering a guilty plea in the case.

Here are more details from the report: 

Boeing has no longer agreed to plead guilty in the case, prosecutors told family members of crash victims during a Friday meeting, the sources said. The company’s posture changed after a judge rejected a previous plea agreement in December, prosecutors told the family members.

DOJ officials are still weighing whether to proceed with a nonprosecution agreement or take Boeing to trial, a DOJ official said during the meeting. No final decision has been made, and Boeing and DOJ officials have not yet exchanged papers to negotiate final details of any nonprosecution agreement, the official told family members.

In April, Boeing CEO Kelly Ortberg said the planemaker was negotiating with the DoJ to reach a revised plea deal in the criminal fraud case.

“I want this resolved as quickly as anyone,” Ortberg said at a U.S. Senate hearing, referring to the timeline for settling the case. He added, “Hopefully, we’ll have a new agreement here soon.”

Last month, Boeing reached settlements with the families of two victims killed in the March 2019 crash of an Ethiopian Airlines 737 MAX.

In 2021, Boeing accepted responsibility for compensatory damages to the families of the 157 victims of the Ethiopian Airlines crash.

Boeing apologized for both crashes last month, saying it “made an upfront commitment to fully and fairly compensate the families and accepted legal responsibility for the accidents. We will continue to work to fairly resolve the claims of the family members.”

Reuters notes that the planemaker has “settled more than 90% of claims from the two 737 MAX accidents and paid billions of dollars in compensation to the families through lawsuits, a deferred prosecution agreement, and other payments.”

Of course, the nonprosecution agreement still requires a judge’s approval and could force Boeing to pay additional fines, implement further internal reforms, or strengthen compliance measures, among other conditions. Those conditions have not yet been released.