Justice Department Plans to Drop Boeing Charges Over 737 Max Crashes

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Full Story

The Justice Department has reached a preliminary agreement with Boeing to dismiss criminal charges tied to two fatal 737 Max crashes, despite objections from some victims’ families. This decision follows years of legal battles over the 2018 and 2019 crashes that killed 346 people. The agreement aims to resolve a fraud case without a trial. It marks a shift from a prior deal where Boeing agreed to plead guilty.

The crashes involved Lion Air Flight 610 in 2018 and Ethiopian Airlines Flight 302 in 2019. Both incidents led to the global grounding of the 737 Max for nearly two years.

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The Context

Boeing had faced a fraud charge for misleading regulators about the plane’s flight control system. The system, known as MCAS, was linked to the uncontrollable dives in both crashes.

In 2021, Boeing entered a deferred prosecution agreement, paying $2.5 billion in penalties. This included a $500 million fund for victims’ families and $1.77 billion for airlines.

The Justice Department found Boeing violated the 2021 agreement by failing to enforce a robust compliance program. This breach prompted renewed scrutiny and the possibility of prosecution.

Last year, Boeing agreed to plead guilty to a fraud charge and pay additional fines. A federal judge rejected that deal, citing concerns over the selection of an independent monitor.

The new agreement reportedly involves Boeing paying $444.5 million into a victims’ fund. It also requires hiring a compliance consultant instead of an independent monitor.

Some support the deal, arguing it ensures accountability while avoiding a lengthy trial. Others oppose it, believing it lets Boeing evade full responsibility for the tragedy.