Boeing is likely to avoid a criminal trial over fraud charges related to the crashes of its 737 MAX aircraft in 2018 and 2019, following a potential agreement with U.S. prosecutors. The U.S. Department of Justice had previously accused the aerospace company of violating the terms of a 2021 settlement that allowed Boeing to evade criminal prosecution after two plane crashes that killed 346 people, reports the Baltimore Chronicle with reference to Reuters.
According to the latest developments, the parties are close to reaching a revised agreement. Under the new deal, Boeing is expected to plead guilty to conspiracy to defraud the Federal Aviation Administration (FAA). However, the company would avoid a public court trial, as the agreement is designed to resolve the matter outside the courtroom.
The allegations against Boeing concern the company’s misrepresentation to the FAA regarding the MCAS software, which was implicated in both crashes—Lion Air’s in October 2018 and Ethiopian Airlines’ in March 2019. The earlier 2021 settlement required Boeing to pay over $2.5 billion in penalties and compensation, and to comply with strict conditions for three years. In May 2024, prosecutors concluded that Boeing failed to meet those obligations, including its failure to establish an effective compliance program to prevent future violations.
Through this potential new resolution, Boeing may escape more serious legal consequences. However, the final decision must still be approved by a federal judge. Family members of the crash victims have said they will oppose any agreement that does not involve a public trial.
Earlier we wrote that China lifts ban on Boeing 737 MAX imports.