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Justice Department Mulls Criminal Charges Against Boeing Amid Settlement Violation
U.S. prosecutors have recommended criminal charges against Boeing, alleging the company violated a settlement agreement related to two 737 MAX crashes. The Justice Department faces a July 7 deadline to decide whether to proceed with prosecution. This revelation comes after May findings indicated Boeing breached a 2021 agreement that initially protected it from a conspiracy to commit fraud charge stemming from the 2018 and 2019 crashes. Under this deal, Boeing was to revamp its compliance practices and provide regular reports in exchange for avoiding prosecution and had agreed to pay $2.5 billion to settle the initial investigation.
Boeing has contested these findings, maintaining it has adhered to the settlement terms. Nevertheless, discussions between Boeing and the Justice Department are ongoing, with no assurance officials will pursue charges. If prosecuted, it would intensify Boeing's ongoing crisis, especially after a turbulent incident involving an Alaska Airlines flight in January 2021, just days before the settlement expired.
The prosecutors' recommendation suggests that charges could extend beyond the original conspiracy to commit fraud allegations. Alternatively, the DOJ might opt to extend the settlement by a year or impose more stringent conditions. Such settlements often involve significant financial penalties and might include appointing a third party to oversee the company's compliance. The DOJ could also mandate a guilty plea, which Boeing is likely keen to avoid due to potential business repercussions, particularly concerning its lucrative contracts with the U.S. government and the Defense Department.
Victims' families of the two fatal 737 MAX crashes have long condemned the 2021 agreement, advocating for prosecutorial action against Boeing and its executives. They renewed their calls for severe penalties, demanding a $25 billion fine and criminal prosecution during recent Senate hearings where Boeing's CEO Dave Calhoun publicly acknowledged the company's safety failures and apologized to the bereaved families.
