With a trial set to begin June 23, the U.S. Dept. of Justice may drop its prosecution of Boeing Corp. and instead enter into a new non-prosecution agreement, according to several published reports. It would be the second such agreement for the DOJ regarding Boeing and its management of the 737 MAX program.
Financial and other terms of the reported new agreement have not been revealed, but such an outcome would mean Boeing could avoid a felony fraud conviction and thus continue to be awarded federal contracts.
Neither the government nor Boeing has commented on the reported non-prosecution agreement.
If the settlement is granted, families of 346 victims from two 737 MAX crashes in 2018 and 2019 would lose another opportunity for a verdict declaring Boeing liable in those incidents.
Attorneys representing the families have criticized the government’s apparent willingness to drop the prosecution and concede “that Boeing should be allowed to escape any real consequences for its deadly lies."
The DOJ told the victims’ families it will consider their written objections to a non-prosecution agreement until May 22, one month before the trial is set to begin.
In 2021, Boeing entered into a deferred prosecution agreement by which it pled guilty to criminal fraud conspiracy to mislead inspectors prior to the certification of that twin-engine aircraft, in 2017. After two fatal crashes of the 737 MAX in 2018 and 2019, the program was idled for 19 months. Once Boeing corrected the automated flight-control software determined to have caused the crashes, the program resumed and the updated aircraft returned to service.
Boeing agreed to pay more than $2.5 in fines and compensation to airlines, and to fund for victims' families. It also agreed to address its compliance and safety standards, and it accepted oversight by an independent monitor.
In February 2024 DOJ charged Boeing with violating that agreement after a January 2024 incident when a side door plug failed in midflight aboard an Alaska Airlines 737 MAX 9. In July, Boeing pled guilty to a criminal fraud conspiracy charge and agreed to pay a fine of up to $487.2 million.
But federal court rejected the agreement in December 2024, on the grounds that federal and corporate diversity policies would discredit the selection of a new independent monitor of Boeing operations. Boeing later withdrew its guilty plea, leading to negotiations with DOJ about a new settlement.
