Boeing avoids prosecution over deadly 737 Max crashes: Company reaches deal with Justice Department
The agreement between Boeing and Justice Department includes over $1.1 billion in fines, victim funds, and compliance improvements — but victims' families call it an unjust resolution to the deadliest corporate crime in U.S. history.
Boeing has entered into a new non-prosecution agreement with the U.S. Department of Justice that will spare the aircraft manufacturer from a criminal trial related to two fatal crashes of its 737 Max aircraft. The 2018 and 2019 accidents, which killed 346 people, have placed the company in the position of being at the center of one of the most catastrophic safety failures in aviation history.
Under the terms outlined Friday, Boeing will avoid felony charges and trial in exchange for more than $1.1 billion in fines, a new victims’ compensation fund, and required safety and compliance-related expenditures. The DOJ said the resolution is in the public interest, while the victims’ families blasted the deal as yet another “sweetheart deal” that allows Boeing to evade accountability.
Boeing to pay over $1.1 billion under new agreement
The new settlement includes a $487.2 million criminal fine which will be crediting a $243.6 billion amount already paid, plus $444.5 million for a new fund for crash victims. Boeing has also agreed to devote $445 million toward enhancements to its compliance, safety and quality programs. This settlement comes on the heels of accusations that Boeing violated the terms of a previous 2021 settlement by not fully implementing a robust ethics and compliance program.
The Justice Department has indicated that it intends to finalize and send the proposed agreement to the court for approval by the end of next week. If the court approves the agreement, it will formally resolve the government’s criminal case against Boeing without it going to trial. The company declined to comment on the filing.
Boeing is an aircraft company that is involved in controversies over aircraft accidents and technical failures. Photo: NBC News
Families of crash victims condemn agreement
Family members of the victims of the crash were very vocal about the DOJ’s decision, and their attorney called the deal “obviously wrong” for what he called the deadliest corporate crime in U.S. history. Many family members expressed a deep level of frustration that the Boeing executives have not been held personally accountable and stated that they would ask the court to reject the deal.
Although the DOJ said over 110 families supported or were amenable to a pre-trial resolution, others still maintain that only a trial will bring them justice. The prior 2021 deal shielded Boeing from prosecution, and the new deal has come about after Boeing allegedly broke the terms of the prior settlement. Those advocating for a more invasive way of dealing with corporate crime argue that this is a horrible precedent for corporate accountability.
