The Department of Justice is set to press criminal charges against Boeing for breaching the 737 Max Agreement, as reported.
The Department of Justice of the United States is planning to criminally charge Boeing for breaching an agreement related to two incidents, as reported by various sources. The federal government is seeking a guilty plea from Boeing, which may result in a criminal fine of $243.6 million and the implementation of an independent compliance monitor.
Background and Context
The agreement between Boeing and the Department of Justice was prompted by a crash in Indonesia in 2017, which claimed the lives of 189 people, and a crash in Ethiopia in 2018, resulting in the deaths of 157 individuals. Following criticism from lawmakers and families of the victims, Boeing entered into an agreement with the Department of Justice in 2021, temporarily shielding it from criminal prosecution. The agreement required Boeing to disclose evidence of fraud and enhance its compliance program.
Ongoing Issues and Legal Proceedings
Subsequently, a panel identified safety and compliance issues within Boeing when an aircraft operated by Alaska Airlines experienced an explosion in January. Four months later, the federal government accused Boeing of failing to implement an effective compliance program to prevent violations of U.S. fraud laws.
Current Situation and Future Steps
The Department of Justice has now decided to proceed with criminal charges against Boeing and is pushing for the aircraft manufacturer to agree to a guilty plea. This agreement could result in additional fines of around $243.6 million and the appointment of an independent monitor to ensure compliance with anti-fraud laws. Families and lawyers of the victims of the 737 Max crash have been informed of the proposed guilty plea agreement and have been given a week to decide whether to accept the offer or pursue their case in court.
