The Justice Department announced on Tuesday that Boeing has breached a 2021 prosecution agreement that protected it from criminal charges related to the deadly 737 Max crashes in 2018 and 2019. This means that the aerospace company is now open to criminal prosecution, although it is not clear if prosecutors will pursue charges.
Boeing violated the agreement by not having a compliance and ethics program in place to prevent and detect violations of U.S. fraud laws throughout its operations. This could potentially lead to a conspiracy to defraud the U.S. charge that Boeing had avoided through the original deal. The company had agreed to pay $2.5 billion to settle allegations that it had withheld information from the Federal Aviation Administration regarding the operation of its 737 Max planes after the crashes that resulted in 346 fatalities.
Boeing will have 30 days to respond to the decision, and prosecutors will inform the court by July 7 whether they plan to move forward with charges. Boeing has stated that it believes it honored the terms of the agreement and is looking forward to the opportunity to respond to the allegations.
The $2.5 billion settlement includes compensation payments to Boeing’s 737 Max airline customers, the establishment of a crash-victim beneficiary fund, and a criminal monetary penalty. This agreement was reached as a result of the two crashes involving the Boeing 737 Max in 2018 and 2019. The crashes were attributed to issues with the Maneuvering Characteristics Augmentation System, which was added to the planes without the knowledge of pilots or airlines. Boeing admitted to deceiving the FAA about this part and its operation, which led to the grounding of the 737 Max planes for 20 months.
The first crash occurred in 2018 off the coast of Indonesia, where all 189 passengers and crew on board were killed. The second crash happened in Ethiopia in 2019, resulting in the deaths of all 157 passengers and crew. Investigations into these crashes highlighted the issues with the 737 Max’s flight stabilizing system and Boeing’s withholding of crucial information. The company made significant changes to its operations following these incidents.
As this is a developing story, updates are expected in the coming days. The Justice Department’s decision to pursue criminal charges against Boeing marks a significant development in the aftermath of the 737 Max crashes. The aerospace company will need to address the allegations and respond accordingly as the situation progresses.
