The Justice Department told a federal court on Friday that it has reached a deal with Boeing that would allow the aircraft manufacturer to avoid prosecution in connection with the crash of two 737 Max jets in 2018 and 2019 that killed a combined 346 people.
According to a filing submitted to the U.S. District Court for the Northern District of Texas, the Justice Department and Boeing have reached an agreement “in principle” and are “proceeding expeditiously” to memorialize it in writing. Once that takes place, the government will file a motion to dismiss the case.
The agreement is a “fair and just resolution that serves the public,” the department wrote, “and guarantees further accountability and substantial benefits from Boeing immediately, while avoiding the uncertainty and litigation risk presented by proceeding to trial.”
The Justice Department said it met last week with family members of those killed in the two crashes and gave them an opportunity to weigh in on the non-prosecution agreement (NPA), which was then in provisional form. Family members and legal counsel for 110 of the victims supported the deal, the department said, with many expressing a desire for the proceedings to conclude as quickly as possible.
Still, government attorneys acknowledged that many family members continue to advocate for a trial and are “opposed to any pre-trial resolution.”
Settlement in the Works
As part of the deal, Boeing would admit to engaging in a conspiracy to obstruct a lawful FAA investigation and pay a total of $1.1 billion. Of that amount, $482 million would be a criminal penalty and $444.5 million would go to a beneficiary fund for the crash victims, which Boeing has already paid $500 million into as part of an earlier agreement. The company must also agree to invest hundreds of millions of dollars into its quality, compliance, and safety programs.
FAA oversight of Boeing’s facilities, implemented last year after a 737 Max door plug blew out on an Alaska Airlines flight, would continue, as would the company’s cooperation with an independent compliance consultant.
Boeing’s board of directors would also have to meet with the family members of the crash victims to hear their concerns about the company’s conduct.
The Joe Biden administration filed charges against Boeing in 2021, alleging the company deceived FAA investigators about details of a flight stabilization feature on the 737 Max, known as the maneuvering characteristics augmentation system (MCAS). The system played a role in both crashes.
The prospect of a NPA on the fraud charge has drawn criticism over the last month, including from Democrats who claim the Donald Trump administration is quietly settling cases against powerful corporations that it could and should pursue.
On Friday, Senators Elizabeth Warren of Massachusetts and Richard Blumenthal of Connecticut sent a letter urging the Justice Department not to cut a deal with Boeing.
“DOJ must not sign a non-prosecution agreement with Boeing that would allow the company to weasel its way out of accountability for its failed corporate culture, and for any illegal behavior that has resulted in deadly consequences,” they wrote.
The suggestion of a deal has also been criticized by lawyers representing some of the victims’ families.
