WASHINGTON (TNND) — Boeing is set to avoid criminal prosecution for allegedly misleading regulators about the 737 Max jetliner in a new agreement with the U.S. Department of Justice. The deal, outlined in court documents filed on Friday, is still being finalized.
It would require Boeing to pay and invest over $1.1 billion, along with an additional $445 million to the families of crash victims. In exchange, the DOJ would dismiss the fraud charge in Boeing’s criminal case.
A Justice Department spokesperson said, “Ultimately, in applying the facts, the law, and Department policy, we are confident that this resolution is the most just outcome with practical benefits. Nothing will diminish the victims’ losses, but this resolution holds Boeing financially accountable, provides finality and compensation for the families and makes an impact for the safety of future air travelers.”
The families of victims from the 2018 Indonesia and 2019 Ethiopia crashes have long advocated for a public trial, prosecution, and financial penalties against Boeing.
Paul Cassell, an attorney representing many of the families, stated earlier this week, “Although the DOJ proposed a fine and financial restitution to the victims’ families, the families that I represent contend that it is more important for Boeing to be held accountable to the flying public.”
Boeing has faced accusations of misleading the Federal Aviation Administration about components of the 737 Max before it was certified for passenger flights. In 2021, Boeing reached a $2.5 billion settlement with the DOJ, which included a $243.6 million fine, to avoid prosecution. However, prosecutors later claimed Boeing violated the terms of that agreement by failing to implement promised changes to detect and prevent violations of federal anti-fraud laws.
Last July, Boeing agreed to plead guilty to the felony fraud charge instead of facing a public trial. In December, U.S. District Judge Reed O’Connor in Fort Worth rejected the plea deal, citing concerns that diversity, equity, and inclusion policies could influence the selection of a monitor to oversee Boeing’s compliance.
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The Associated Press contributed to this report.
