Sign in Subscribe
Fraud

Boeing Faces Last Chance for Criminal Prosecution in 737 Max Jetliner Crashes

Strategic Insights

— 2 min read

Families of passengers who lost their lives in the two deadly crashes of Boeing 737 Max jetliners may finally get their chance to demand the company face criminal prosecution. A federal judge in Texas is scheduled to hear arguments on a U.S. government motion to dismiss a felony charge against Boeing, which could potentially lead to the company facing a public trial and more severe financial punishment. The crashes, which killed 346 people off the coast of Indonesia and in Ethiopia in 2018 and 2019, have been linked to a flight-control system that Boeing allegedly deceived government regulators about.

Key Takeaways:

  • The U.S. prosecutors charged Boeing with conspiracy to commit fraud in connection with the crashes, which involved the company deceiving government regulators about a flight-control system.
  • Boeing decided to plead guilty instead of going to trial, but U.S. District Chief Judge Reed O'Connor rejected the plea agreement in December.
  • O'Connor objected to diversity, equity and inclusion policies potentially influencing the selection of an independent monitor to oversee Boeing's promised reforms.
  • The Justice Department and Boeing spent six months renegotiating their plea deal after Trump ordered an end to the diversity initiatives that gave O'Connor pause.
  • A non-prosecution agreement was reached, which would see the government dismiss the charge in exchange for Boeing paying or investing $1.1 billion in fines, compensation for the crash victims' families, and internal safety and quality measures.
  • The agreement was negotiated in light of "significant changes" Boeing made to its quality control and anti-fraud programs since entering into the July 2024 plea deal.
  • Some of the families who lost loved ones in the crashes are planning to address the court on Wednesday, including Catherine Berthet, whose daughter died in the 737 Max crash in Ethiopia.
  • Justice Department lawyers maintain that the families of 110 crash victims either support a pre-trial resolution or do not oppose the non-prosecution agreement.

Statistics:

  • 346 people were killed in the two crashes of the Boeing 737 Max jetliners off the coast of Indonesia and in Ethiopia in 2018 and 2019.
  • The crashes were linked to a flight-control system that Boeing allegedly deceived government regulators about.
  • The Justice Department's non-prosecution agreement would see Boeing pay or invest $1.1 billion in fines, compensation for the crash victims' families, and internal safety and quality measures.
  • The agreement would cover a period of two years.

Sources:

  • The Associated Press
  • "Justice Department's Deal with Boeing Lets 110 Crash Victim Families Off the Hook" by Lisa Leff and Rio Yamat

Read more