Boeing violated agreement to avoid criminal prosecution, says Department of Justice
Boeing could face criminal proceedings after the Department of Justice (DOJ) accused it of violating the terms of a 2021 settlement agreement.
The department said Boeing breached its obligations under the agreement “by failing to design, implement, and enforce an ethics and compliance program to prevent and detect violations of U.S. fraud laws throughout its operations.”
As a result, Boeing is subject to prosecution by the government for any federal criminal violations. filed in federal court in Texas on Tuesday.
The government is still deciding “how it will proceed in this matter” and has given Boeing until June 13 to respond.
“We believe we have complied with the terms of that agreement and look forward to the opportunity to respond to the Department on this issue,” a Boeing spokesperson said. “As we do so, we will collaborate with the Department with utmost transparency, as we have throughout the agreement term, including in response to its inquiries following the Alaska Airlines Flight 1282 accident.”
Background
Boeing’s shares fell 0.2% in pre-market trading on Wednesday. Year-to-date, Boeing’s shares have plummeted 28% as they continue .
The agreement was linked to a DOJ investigation involving the Boeing 737 MAX aircraft: Lion Air Flight 610, which killed 189 people on board after crashing into the Java Sea 13 minutes after takeoff in 2018; and Ethiopian Airlines Flight 302, which crashed 6 minutes after takeoff, killing 157 people on board one year later.
Previous Issues
Boeing thought it had left behind the problems of the 737 MAX and executives were hoping for the aircraft manufacturer. So far, 2024 — starting with just five days in the year. The incident intensified , and . In addition, the aerospace giant’s year has been further tarnished by in several of its aircraft.
Boeing had in January 2021 to resolve the fraud charges to the Federal Aviation Administration Aircraft Evaluation Group on the Maneuvering Characteristics Augmentation System of the aircraft, which impacted the Boeing 737 MAX flight control system.
As part of the agreement, Boeing also agreed to report evidence of violations of U.S. fraud laws committed by its employees and strengthen its compliance program and enhance reporting requirements of the compliance program, which required Boeing to meet with the Fraud Section at least quarterly and submit annual reports on the status of its remediation efforts and information on its compliance program.
The Department of Justice said it will “continue to consult with the families of the victims of Lion Air Flight 610 and Ethiopian Airlines Flight 302 accidents,” as well as the airlines’ customers and their advisors on the next steps.
This article originally appeared on .
