Judge Reed O’Connor of the District Court in Fort Worth, Texas, approved the U.S. Department of Justice’s request to dismiss the criminal case against Boeing related to the two fatal 737 MAX crashes in Indonesia (2018) and Ethiopia (2019), which resulted in 346 fatalities. Although the magistrate strongly criticized the government’s decision, he acknowledged he did not have the authority to reject the agreement, Reuters reported.
O’Connor stated that the pact “does not guarantee the necessary accountability to protect the flying public” and described Boeing’s crime as “possibly the deadliest corporate crime in U.S. history.”
Shift in the Government’s Stance
Initially, under the Biden administration, Boeing had agreed to plead guilty to conspiracy to commit fraud. However, after President Donald Trump took office, the Department of Justice changed course in May and withdrew the requirement for a guilty plea. This modification prevented Boeing from facing restrictions on obtaining contracts with agencies like the Department of Defense and NASA, although such limitations could be waived by the entities themselves.
The decision also eliminated the requirement for Boeing to be supervised by an independent monitor for three years, replacing it with the hiring of a compliance consultant chosen by the company itself.
→ Boeing Receives FAA Authorization to Increase 737 MAX Production to 42 Aircraft per Month
Reactions from the Families and the Judge
During a three-hour hearing in September, O’Connor heard objections from the victims’ families, who expressed their rejection of the agreement. The judge acknowledged that the government had changed its stance over time and that Boeing “did not correct its fraudulent conduct on its own during the deferred prosecution agreement,” which justified the imposition of external supervision.
A lawyer for the families announced that an appeal against the ruling will be filed.
Arguments from the Department of Justice and Boeing’s Response
The Department of Justice defended the agreement, stating that “instead of allowing for prolonged litigation, this pact provides closure for the victims and forces Boeing to act immediately.” A spokesperson added that “this resolution is the fairest outcome.”
For its part, Boeing committed to fulfilling the obligations of the agreement and assured that it will continue strengthening its safety, quality, and compliance programs.
Compensations and Additional Penalties
As part of the agreement, Boeing must pay:
- An additional $444.5 million to a victim compensation fund, to be distributed equally among those affected by both accidents.
- $243.6 million in fines.
- More than $455 million to strengthen its internal compliance, safety, and quality systems.
Furthermore, in September, the Federal Aviation Administration (FAA) proposed a $3.1 million fine against Boeing for various safety violations, including incidents related to the in-flight emergency on the Alaska Airlines flight in January 2024, and for interference with the independence of safety inspectors.
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