DOJ Says Boeing Violated Deal Cut After 737 Max Crashes

Boeing has violated a settlement that allowed the company to avoid criminal prosecution after two deadly crashes involving its 737 Max aircraft over five years ago, the Justice Department told a federal judge, David Koenig, and Alanna Durkin Richer reported for the Associated Press (AP).

New 737 Max jets crashed in 2018 in Indonesia and 2019 in Ethiopia, killing 346 people.

It is now up to the Justice Department to decide whether to file charges against Boeing. Prosecutors will inform the court no later than July 7 on how they plan to proceed, the department said.

New 737 Max jets crashed in 2018 in Indonesia and 2019 in Ethiopia, killing 346 people.

Boeing reached a $2.5 billion settlement with the Justice Department in January 2021 to avoid prosecution on a single charge of fraud — misleading federal regulators who approved the plane.

Boeing blamed the deception on two relatively low-level employees.

In a letter filed to the federal court in Texas, Glenn Leon, head of the Justice Department criminal division’s fraud section, said Boeing violated terms of the settlement by failing to make promised changes to detect and prevent violations of federal anti-fraud laws.

This determination means Boeing could be prosecuted “for any federal criminal violation of which the US has knowledge,” including the fraud charge that the company hoped to avoid with the settlement. It is not clear whether the government will prosecute Boeing.