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Sunday, May 18, 2025
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Boeing Set to Avoid Criminal Prosecution Related to 737 Max Crashes
Families of victims express outrage as U.S. Department of Justice considers a non-prosecution agreement with the aerospace giant.
Boeing is reportedly on the verge of avoiding prosecution in a fraud case linked to the fatal crashes of its 737 Max jet, which resulted in the deaths of 346 people.
Sources familiar with the matter indicate that the U.S. Department of Justice (DOJ) is contemplating a non-prosecution agreement, which would allow Boeing to evade a guilty plea.
Victim families were informed of this potential development during a recent call with DOJ officials, leading to expressions of outrage from representatives.
The families characterized the decision as 'morally repugnant' following a tense conversation regarding the proposed agreement.
As of now, Boeing has declined to comment on the ongoing discussions, and the DOJ has not provided any immediate response to inquiries about the agreement.
The crashes occurred in October 2018 and March 2019, involving Lion Air flight 610 and Ethiopian Airlines flight 302, respectively.
The first crash resulted in 189 fatalities, while the second crash led to 157 deaths and ultimately prompted the global grounding of the 737 Max for nearly two years.
This incident severely impacted Boeing's reputation within the aerospace industry.
In January 2021, Boeing settled a criminal investigation regarding these incidents, later accused by prosecutors of failing to adhere to the terms of that settlement in 2024. This situation led the DOJ to offer the company a controversial plea deal last summer.
However, a subsequent ruling by U.S. District Judge Reed O'Connor in December rejected the proposed agreement, citing a diversity and inclusion provision concerning the selection of an independent monitor.
The earlier plea deal included a criminal fraud conspiracy charge alongside a significant financial penalty of approximately $487.2 million, initially negotiated toward the end of the Biden administration.
Following the rejection by Judge O’Connor, the case transitioned to management under the Trump administration, which has faced scrutiny over its enforcement priorities towards large corporations.
Sanjiv Singh, legal counsel for 16 families of the crash victims, voiced significant concern regarding the potential non-prosecution agreement, stating that it undermines the need for substantial reform in Boeing's safety practices.
In the stock market, shares in Boeing saw a decrease of 0.5% in New York trading amid the unfolding developments.
Sources familiar with the matter indicate that the U.S. Department of Justice (DOJ) is contemplating a non-prosecution agreement, which would allow Boeing to evade a guilty plea.
Victim families were informed of this potential development during a recent call with DOJ officials, leading to expressions of outrage from representatives.
The families characterized the decision as 'morally repugnant' following a tense conversation regarding the proposed agreement.
As of now, Boeing has declined to comment on the ongoing discussions, and the DOJ has not provided any immediate response to inquiries about the agreement.
The crashes occurred in October 2018 and March 2019, involving Lion Air flight 610 and Ethiopian Airlines flight 302, respectively.
The first crash resulted in 189 fatalities, while the second crash led to 157 deaths and ultimately prompted the global grounding of the 737 Max for nearly two years.
This incident severely impacted Boeing's reputation within the aerospace industry.
In January 2021, Boeing settled a criminal investigation regarding these incidents, later accused by prosecutors of failing to adhere to the terms of that settlement in 2024. This situation led the DOJ to offer the company a controversial plea deal last summer.
However, a subsequent ruling by U.S. District Judge Reed O'Connor in December rejected the proposed agreement, citing a diversity and inclusion provision concerning the selection of an independent monitor.
The earlier plea deal included a criminal fraud conspiracy charge alongside a significant financial penalty of approximately $487.2 million, initially negotiated toward the end of the Biden administration.
Following the rejection by Judge O’Connor, the case transitioned to management under the Trump administration, which has faced scrutiny over its enforcement priorities towards large corporations.
Sanjiv Singh, legal counsel for 16 families of the crash victims, voiced significant concern regarding the potential non-prosecution agreement, stating that it undermines the need for substantial reform in Boeing's safety practices.
In the stock market, shares in Boeing saw a decrease of 0.5% in New York trading amid the unfolding developments.
