Justice Department, Boeing reach deal to avoid prosecution over 737 Max crashes

WASHINGTON (AP) — The Justice Department has reached a deal with Boeing that will enable the airplane manufacturer to avert criminal prosecution for allegedly deceiving U.S. regulators regarding the 737 Max jetliner prior to the crashes of two planes that resulted in 346 fatalities, as per court documents submitted on Friday.

According to the “agreement in principle,” which is yet to be finalized, Boeing would contribute and invest over $1.1 billion, including an extra $445 million for the families of the crash victims, the Justice Department stated.

In return, the department has consented to dismiss the fraud charge against Boeing, allowing the company to evade a potential criminal conviction that could have endangered its status as a federal contractor, experts suggest.

“Ultimately, in applying the facts, the law, and Department policy, we are confident that this resolution is the most just outcome with practical benefits,” a Justice Department spokesperson said in a statement.

“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.”

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.

“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,” Paul Cassell, an attorney for many of the families in the long-running case, said in a statement earlier this week.

Democratic Sens. Elizabeth Warren and Richard Blumenthal had urged the Justice Department not to sign a non-prosecution deal with Boeing, saying in a letter to Attorney General Pam Bondi this week that any agreement that lets the company and its executives “avoid accountability would be a serious mistake.”

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.

The Justice Department charged Boeing in 2021 with deceiving FAA regulators about the software, which did not exist in older 737s, and about how much training pilots would need to fly the plane safely. The department agreed not to prosecute Boeing at the time, however, if the company paid a $2.5 billion settlement, including the $243.6 million fine, and took steps to comply with anti-fraud laws for three years.

Federal prosecutors, however, last year said Boeing violated the 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.

The plea deal had called for an independent monitor to be named to oversee Boeing’s safety and quality procedures for three years. Under the agreement announced Friday, Boeing must retain an “independent compliance consultant” who will make recommendations for “further improvement” and report back to the government, according to court papers.

You May Also Like
Man killed after horse-drawn carriage bolts and flips near popular New York City tourist destination

Man Dies After Horse-Drawn Carriage Flips Near Central Park in New York City

An 18-year-old tourist from India was killed Wednesday after a horse-drawn carriage…
Social Security recipients face looming benefit cuts. Can the program be saved?

Social Security Benefit Cuts Loom: Can Congress Save the Program in Time?

Social Security is heading toward a major financial deadline: its trust fund…
Chicago crime: Suspect Merlin Lu, 21, charged with hate crime, arson for burning cross in Grant Park, police say

Chicago Police Charge 21-Year-Old Merlin Lu With Hate Crime, Arson After Cross Burning in Grant Park

CHICAGO (WLS) — A 21-year-old Chicago man is facing a series of…
Chicago, Illinois weather forecast: Tornado Watch issued for parts of Chicago area | Radar

Chicago Weather Alert: Tornado Watch Issued Across Parts of the Chicago Area — Live Radar Updates

Severe weather is expected to impact the Chicago area on Wednesday, with…
Man dies after carriage horse gets loose in New York City's Central Park, crash

Central Park Carriage Horse Crash Leaves Man Dead After Runaway Incident in NYC

NEW YORK — An 18-year-old man died after being critically injured in…
Gilgo Beach serial killer joins infamous group of monsters as he opens ghoulish mind to FBI

Judge gives Rex Heuermann maximum sentence in Gilgo Beach serial killings case

RIVERHEAD, N.Y. — Rex Heuermann, the Long Island serial killer who confessed…
Federal Reserve holds interest rates steady amid resurgent inflation

Fed Holds Interest Rates Steady as Inflation Pressures Reemerge

The Federal Reserve held its benchmark interest rate steady on Wednesday as…
Mariah Carey, Chloe Bailey, Ali Wong to guest star on final season of 'The Proud Family: Louder and Prouder'

Mariah Carey, Chloe Bailey and Ali Wong Set to Guest Star in Final Season of ‘The Proud Family: Louder and Prouder’

Disney+ has unveiled the lineup of guest stars set to appear in…
Barry Moore Wins Runoff for Tuberville's Senate Seat, Despite a 'Dewey Defeats Truman' Snafu

Barry Moore Secures Tuberville’s Senate Seat in Runoff, Despite Election-Night Reporting Mix-Up

Alabama Republicans headed into a runoff for the U.S. Senate between Rep.…
G7 leaders back Trump's plan to end Iran war that faces skepticism at home

G7 Leaders Endorse Trump’s Iran War Exit Plan Amid Skepticism at Home

EVIAN-LES-BAINS, France — Leaders at the Group of Seven summit on Wednesday…
LaGuardia shuts down runway for second time in weeks after pavement issue resurfaces

LaGuardia Closes Runway Again as Recurring Pavement Problem Disrupts Flights

Sinkhole at LaGuardia Airport forces runway shutdown amidst busy holiday travel A…
Air Force identifies 8 crew members killed in B-52 Stratofortress crash at Edwards Air Force Base

Air Force Identifies Eight Service Members Killed in B-52 Stratofortress Crash at Edwards Air Force Base

Officials on Wednesday released the names of the eight people killed in…