DOJ Offers Boeing Deal To Avoid Criminal Charges Over 737 Max Crashes

The U.S. Justice Department has offered Boeing Co. (NYSE:BA) a deal to avoid criminal prosecution over the two fatal 737 Max crashes that killed 346 people, reigniting scrutiny over the company’s accountability and safety practices.

What Happened: On Friday, the DOJ announced a proposed agreement with Boeing to avoid prosecution over the two fatal crashes involving its 737 Max aircraft. The crashes, occurring in October 2018 and March 2019, led to the global grounding of the Max fleet for nearly two years, CNBC reports.

The DOJ’s court filing stated, “The Agreement guarantees further accountability and substantial benefits from Boeing immediately, while avoiding the uncertainty and litigation risk presented by proceeding to trial.”

This agreement follows a 2021 settlement in which Boeing paid $2.51 billion, including a $243.6 million criminal penalty, to avoid prosecution. The DOJ met with victims’ families to discuss the potential deal, but Boeing has not yet commented on the matter, according to CNBC.

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Why It Matters: Victims’ families previously criticized the anticipated deal. Attorney Erin Applebaum, representing the families, previously expressed dissatisfaction with the DOJ’s approach, emphasizing the need for justice and accountability.

“This isn’t justice. It’s a backroom deal dressed up as a legal proceeding,” Applebaum said.

Last July, Boeing accepted a plea deal admitting it misled regulators about the Max’s flight-control system, but a federal judge rejected the agreement, citing issues with its corporate monitorship provisions.

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