Justice Department Considers Ending Criminal Case Against Boeing for Max Crashes

The Justice Department could potentially abandon its criminal case against Boeing, accused of deceiving U.S. regulators about the 737 Max jetliner prior to two crashes that resulted in 346 fatalities, as indicated in a court filing over the weekend.

The department stated in a status report on Saturday that two officials had communicated with families of some crash victims to discuss a possible pretrial agreement, which could lead to dropping the criminal fraud charge against the aerospace corporation.

The Justice Department noted that no final decision had been reached and mentioned that more time was being allotted for the family members to provide their input. A federal judge in Texas has planned for the trial to commence on June 23.

Paul Cassell, an attorney for many of the families in the long-running case, said his clients strongly oppose dropping the criminal case.

“We hope that this bizarre plan will be rejected by the leadership of the department,” Cassell said in a statement. “Dismissing the case would dishonor the memories of 346 victims who Boeing killed through its callous lies.”

Many relatives of the passengers who died in the crashes, which took place off the coast of Indonesia and in Ethiopia less than five months apart in 2018 and 2019, have spent years pushing for a public trial, the prosecution of former company officials, and more severe financial punishment for Boeing.

Boeing was accused of misleading the Federal Aviation Administration about aspects of the Max before the agency certified the plane for flight. Boeing did not tell airlines and pilots about a new software system, called MCAS, that could turn the plane’s nose down without input from pilots if a sensor detected that the plane might go into an aerodynamic stall.

The Max planes crashed after a faulty reading from the sensor pushed the nose down and pilots were unable to regain control. After the second crash, Max jets were grounded worldwide until the company redesigned MCAS to make it less powerful and to use signals from two sensors, not just one.

Boeing avoided prosecution in 2021 by reaching a $2.5 billion settlement with the Justice Department that included a previous $243.6 million fine.

A year ago, prosecutors said Boeing violated terms of the 2021 agreement by failing to make promised changes to detect and prevent violations of federal anti-fraud laws. Boeing agreed last July to plead guilty to the felony fraud charge instead of enduring a potentially lengthy public trial.

But in December, U.S. District Judge Reed O’Connor in Fort Worth rejected the plea deal. The judge said the diversity, inclusion and equity or DEI, policies in the government and at Boeing could result in race being a factor in picking a monitor to oversee Boeing’s compliance with the agreement.

Lawyers for the government and Boeing have spent months discussing a new deal. The Justice Department said in its latest filing that the two sides “discussed a possible framework for a nonprosecution agreement—but have not exchanged a draft written agreement—that would impose obligations on both parties,” including Boeing paying an additional fine and compensation.

Lawyers for the families said they learned during Friday’s meeting with the acting head of the Justice Department’s criminal fraud section and the acting U.S. attorney for northern Texas that Boeing no longer was willing to plead guilty.

The Justice Department said it had agreed to consider any written submissions by the family members through May 22. After that, the department said it would notify O’Connor promptly about how it wants to proceed.