Boeing May Reportedly Once Again Dodge Prosecution Over 737 Max Crashes — Victims' Families Slam DOJ's Potential Agreement As 'Backroom Deal Dressed Up As A Legal Proceeding'
The U.S. Department of Justice is reportedly considering a non-prosecution agreement that would allow Boeing Co. (NYSE:BA) to avoid criminal charges tied to two fatal 737 Max crashes, prompting outrage from victims' relatives.
What Happened: On Friday, prosecutors and attorneys representing families of the 346 people killed in the 2018 and 2019 crashes met to discuss resolving the case without bringing Boeing to trial, reported the Financial Times, citing sources familiar with the matter.
Under the proposed deal, Boeing would pay roughly $444.5 million to victims' families in exchange for the DOJ declining to prosecute.
Boeing did not immediately respond to Benzinga’s request for comment.
Erin Applebaum, a lawyer representing the families, decried the proposal. "This isn't justice. It's a backroom deal dressed up as a legal proceeding," she said. "While DoJ claims no final decision has been made, their scripted presentation made it clear that the outcome has already been decided."
A trial date of June 23 remains on the calendar, but Boeing has made plain it will not plead guilty. No final decision has been made, said one person close to the negotiations.
Why It's Important: Boeing agreed last July to plead guilty to a single count of fraudulently misleading regulators about the Max's flight-control software, but a federal judge rejected that plea deal over concerns about corporate monitorship provisions.
A non-prosecution agreement would mark the second time Boeing escaped full criminal liability in this matter, the report said. In 2021, the DOJ first deferred prosecution after Boeing paid $2.5 billion.
This latest development came after President Donald Trump unveiled a $1.2 trillion economic agreement with Qatar, featuring major deals in aviation, defense, energy and technology. A key highlight was Qatar Airways’ record $96 billion order with Boeing and GE Aerospace.
China has also reportedly resumed accepting Boeing aircraft deliveries after a month-long pause as both Washington and Beijing work to ease tensions.
Price Action: Boeing shares slipped 0.20% during Friday's regular trading session, closing at $205.82, and fell another 1.72% after hours to $202.28. Despite the recent dip, the stock has climbed 11.28% over the past year, according to Benzinga Pro.
Boeing currently holds a 12.20% growth score on Benzinga's Edge Rankings. Curious how it stacks up against other aviation giants? Click here for the full comparison.
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