Boeing reaches agreement in principle with DOJ to avoid prosecution over 737 Max crashes
Boeing has reached an agreement in principle with the Department of Justice to avoid prosecution in the case over two deadly 737 Max crashes, also allowing Boeing to avoid going to trial next month, according to a new court filing.
The agreement still has to go through the judge in the Northern District of Texas, who rejected a previous version of the deal due to a diversity, equity and inclusion provision.
The terms of the agreement include that Boeing "will admit to conspiracy to obstruct and impede the lawful operation of the Federal Aviation Administration Aircraft Evaluation Group," according to a DOJ status report filed on Friday.
They also include that Boeing pay and invest over $1.1 billion -- including $444.5 million to crash victims' families, $455 million to strengthen Boeing's compliance, safety and quality programs, and an additional $243.6 million fine, according to the filing.
The DOJ said it will file the motion to dismiss and the written agreement by the end of next week.
"It is the Government's judgment that the Agreement is a fair and just resolution that serves the public interest," the DOJ said in the filing. "The Agreement guarantees further accountability and substantial benefits from Boeing immediately, while avoiding the uncertainty and litigation risk presented by proceeding to trial."
Lawyers representing the families of the crash victims said they hope to convince the judge to reject the agreement.
"This kind of non-prosecution deal is unprecedented and obviously wrong for the deadliest corporate crime in U.S. history," Paul Cassell, a lawyer representing some of the families, said in a statement. "My families will object and hope to convince the court to reject it."
The two 737 Max crashes killed 346 people in total.
The first crash, on Oct. 29, 2018, in Jakarta, Indonesia, killed all 189 passengers and crew. Black box data from the Lion Air jet revealed the pilots struggled to fight the plane's malfunctioning safety system from takeoff to the moment it nose-dived into the water.
The second crash, on March 10, 2019, happened in Addis Ababa, Ethiopia, when a Boeing aircraft crashed minutes after takeoff and killed 157 people onboard.
The initial plea agreement over the crashes was rejected by U.S. District Judge Reed O'Connor in December 2024, who cited the government's DEI policies as a factor in the selection of an independent compliance monitor for Boeing. Under that deal, the aircraft manufacturing giant had agreed to plead guilty to conspiracy to defraud the United States and pay a fine of at least $243 million.
