DOJ says Boeing broke deal that avoided prosecution after 2 fatal 737 Max crashes
The U.S. Justice Department says Boeing broke a deferred prosecution deal with the government following a pair of fatal 737 Max crashes more than five years ago. Samuel Corum/Getty Images hide caption
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Samuel Corum/Getty Images
The U.S. Justice Department says Boeing broke a deferred prosecution deal with the government following a pair of fatal 737 Max crashes more than five years ago.
Samuel Corum/Getty Images
WASHINGTON — Boeing has violated the terms of a deal to avoid prosecution after the fatal crashes of two 737 Max planes more than five years ago, the U.S. Justice Department told a federal judge on Tuesday.
That means the troubled plane maker could be subject to criminal prosecution for defrauding federal regulators, though Justice Department lawyers stopped short of saying whether they will pursue that remedy.
"The Government has determined that Boeing breached its obligations" under the agreement it reached with the Justice Department in early 2021, "by failing to design, implement, and enforce a compliance and ethics program to prevent and detect violations of the U.S. fraud laws," prosecutors wrote in a letter to Federal District Judge Reed O'Connor in Texas.
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The two-page letter does not mention Alaska Airlines Flight 1282, when a door-plug panel blew off a 737 Max jet in midair in January. But that incident has sparked renewed scrutiny of Boeing's operations by federal regulators, as well as the Justice Department, which has opened a separate investigation.
Boeing says it disagrees with the DOJ's conclusion that it has violated the deal.
"We believe that we have honored the terms of that agreement, and look forward to the opportunity to respond to the Department on this issue," spokeswoman Jessica Kowal said in a statement.
Boeing 737 Max jets are pictured outside a Boeing factory on March 25, 2024 in Renton, Wash. Stephen Brashear/Getty Images hide caption
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Stephen Brashear/Getty Images
Boeing 737 Max jets are pictured outside a Boeing factory on March 25, 2024 in Renton, Wash.
Stephen Brashear/Getty Images
Boeing agreed to the deferred prosecution deal with the DOJ in January 2021 and paid $2.5 billion in fines. The plane maker had been accused of misleading regulators who approved the 737 Max.
The Max crashes — one in Indonesia in 2018 and another in Ethiopia in 2019 — killed a total of 346 people. The accidents were blamed, in part, on a new automated flight control system. That system, called MCAS, powerfully pushed the noses of those jets down repeatedly not long after takeoff, killing all on board.
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The DOJ agreement essentially placed Boeing under probation for three years — a term that ended just days after the midair blowout on January 5th, 2024.
Family members of the crash victims have long criticized the prosecution agreement with Boeing as a sweetheart deal for the company, and have been waging a years-long legal battle to overturn it.
Their lawyers welcomed the DOJ's announcement, and urged prosecutors to go further.
"This is an important first step toward holding Boeing accountable for the deaths of the 346 passengers and crew on the two flights," said Paul Cassell, a former federal judge and law professor at the University of Utah who is representing the families.
"But the Justice Department needs to now follow through with effective, transparent, and vigorous prosecution of the conspiracy charge it has filed," Cassell said.
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"We hope that DOJ will continue to pursue justice for Boeing's victims, and move forward with a prosecution against Boeing for its egregious criminal acts that resulted in the deaths of 346 innocent people," said Erin Applebaum, a lawyer at the firm Kreindler & Kreindler who represents victims' families.
The Justice Department could also seek to essentially extend Boeing's probation under the prosecution agreement.
Prosecutors told the judge they are still determining how to proceed. Under the terms of the agreement, Boeing has a chance to reply to the Justice Department. The DOJ has also scheduled another meeting to seek input from family members of the victims on May 31st in Washington.
FAQs
DOJ says Boeing broke deal that avoided prosecution after 2 fatal 737 Max crashes. The DOJ agreement essentially placed Boeing under probation for three years — a term that ended just days after the midair blowout on January 5th, 2024.
Why was Boeing not criminally prosecuted? ›
Under the 2021 deal, the Justice Department agreed not to prosecute Boeing over allegations it defrauded the Federal Aviation Administration so long as the company overhauled its compliance practices and submitted regular reports. Boeing also agreed to pay $2.5 billion to settle the investigation.
Was anyone prosecuted for 737 Max? ›
Boeing agreed to the deferred prosecution deal with the DOJ in January 2021 and paid $2.5 billion in fines. The plane maker had been accused of misleading regulators who approved the 737 Max. The Max crashes — one in Indonesia in 2018 and another in Ethiopia in 2019 — killed a total of 346 people.
How much did Boeing pay to victims of 737 Max crashes? ›
Boeing 737 MAX drops to 122 metres above ocean
Boeing also agreed to pay $US2.5 billion ($3.8 billion) to settle the investigation. Boeing declined to comment. It has previously said it had "honoured the terms" of the 2021 settlement, which had a three-year term and is known as a deferred prosecution agreement.
Did Boeing agree to accept responsibility for the crash of its 737 Max jet in Ethiopia? ›
After years of litigation, Boeing finally admitted that it was accepting responsibility for the crash of Flight ET 302, which caused the deaths of all 157 passengers and crew aboard. A timeline of the development of the Boeing 737 MAX leading up to the crash and just following it are provided below.
Did Boeing ever compensate families? ›
“We are deeply sorry to all who lost loved ones on Lion Air Flight 610 and Ethiopian Airlines Flight 302. We made an upfront commitment to fully and fairly compensate every family who suffered a loss,” a spokesperson for Boeing said in a statement to The Seattle Times.
Who from Boeing went to jail? ›
Sears (born July 16, 1947) is an American former Boeing executive who was fired and criminally convicted for his role in the United States Air Force tanker contract controversy.
Who was the whistleblower in the Boeing court case? ›
John Barnett worked for Boeing for more than 30 years before retiring in 2017. In the days before his death, he had been giving evidence in a whistleblower lawsuit against the company. Boeing said it was saddened to hear of Mr Barnett's passing. The Charleston County coroner confirmed his death to the BBC on Monday.
Did Boeing apologize for 737 Max? ›
During a U.S. Senate hearing in Washington on June 18, 2024, Boeing CEO Dave Calhoun apologizes to relatives of victims of Boeing 737 Max crashes in 2018 and 2019. Some of those at the hearing held up photos of loved ones who died in the two crashes, which killed a total of 346.
Who was charged for the Boeing 737 MAX? ›
Following its investigation, the DOJ charged Boeing with “a conspiracy to defraud” the Federal Aviation Administration's Aircraft Evaluation Group during its review of Boeing's 737 MAX aircraft.
"Boeing's victims undeniably suffered horrific emotional distress, pain and suffering, and physical impact and injury while they endured extreme G-forces, braced for impact, knew the airplane was malfunctioning, and ultimately plummeted nose-down to the ground at nearly 600 miles per hour, leaving a crater 30 feet deep ...
What went wrong with the Boeing 737 Max case study? ›
The flaws in the software design that took flight control away from the pilots without their knowledge based on data from a single sensor, ultimately led to the two 737 MAX crashes in 2018 and 2019, causing the deaths of 346 people.
How much does a 737 Max cost? ›
Aircraft Pricing
| Aircraft model | Engine | New Price |
|---|
| BOEING 737 MAX 7 | | $99.7M |
| Airbus A318 | GE, Pratt & Whitney | $75.1M |
| Airbus A319 | GE, International Aero Engines | $89.6M |
| Airbus A320 | GE, International Aero Engines | $98M |
34 more rowsDepartment of Justice says Boeing may be criminally liable in 737 Max crashes. Boeing has violated a 2021 agreement that shielded it from criminal prosecution after two 737 Max disasters killed 346 people overseas, the Justice Department told a federal judge in a court filing Tuesday.
Are Airbus safer than Boeing? ›
Let's take a look at the number of NTSB events per 100k departures over time. The result indicates to me that Boeing has more NTSB events per departure, about 6.5 per 100k departures vs. 3.8 per 100k for Airbus (assuming I haven't made any errors). That's about 1.7x more events per departure than Airbus!
Did Boeing lie about the 737 Max? ›
Boeing reached a $2.5 billion settlement with the Justice Department in January 2021 to avoid prosecution on a single charge of fraud — misleading federal regulators who approved the plane. Boeing blamed the deception on two relatively low-level employees.
Is Boeing being held accountable? ›
WASHINGTON – The Federal Aviation Administration (FAA) will continue to hold Boeing accountable after reviewing the company's roadmap to fix its systemic safety and quality-control issues, Administrator Mike Whitaker said Thursday following a three-hour meeting with senior Boeing leaders at FAA headquarters.
What was Boeing punishment for 737 MAX? ›
The DPA provided for the “establishment of a $500 million crash-victim beneficiaries fund to compensate the heirs, relatives, and legal beneficiaries of the 346 passengers who died in the Boeing 737 MAX crashes.” The remaining funds included a criminal penalty of $243.6 million and “compensation payments to Boeing's ...
Did Boeing get charged? ›
Boeing is expected to avoid criminal prosecution after the Justice Department recently found it violated a $2.5 billion settlement shielding it from charges over two 737 Max 8 model crashes in 2018 and 2019 that killed a total of 346 people, according to The New York Times, which reported that department officials have ...
How much has Boeing been fined? ›
In 2021, Boeing agreed to pay $2.5 billion as part of a settlement called a deferred prosecution agreement after it was charged with fraud conspiracy in the wake of the crashes.
