WASHINGTON -- The U.S. Department of Justice (DOJ) has accused Boeing of breaching a 2021 settlement agreement designed to avoid criminal prosecution over its role in two fatal crashes of its 737 Max jets. The accusation, filed in a Texas federal court on Tuesday, suggests that Boeing failed to implement required changes to detect and prevent fraud, placing the company at risk of prosecution.
The settlement, reached in January 2021, involved a $2.5 billion agreement that allowed Boeing to avoid prosecution on a charge of fraud related to misleading federal regulators who approved the 737 Max. However, the DOJ now contends that Boeing did not fulfill its obligations under the agreement. Glenn Leon, head of the DOJ's criminal division's fraud section, stated that this breach could open Boeing to prosecution for any federal criminal violations known to the government, including the initial fraud charge.
Boeing, headquartered in Arlington, Virginia, has disputed the DOJ's claims, asserting its compliance with the settlement terms. The company is expected to respond formally by June 13, and the DOJ will consider this response before deciding whether to pursue charges.
This legal development comes amid ongoing scrutiny of Boeing following a January incident involving an Alaska Airlines 737 Max, where a door plug blew out, leaving a hole in the jetliner. This incident, among others, has triggered multiple investigations into Boeing's manufacturing practices.
The DOJ plans to meet with families of the victims from the 2018 and 2019 crashes on May 31. These meetings follow previous discussions that left families frustrated over the lack of accountability. Paul Cassell, representing families of the second crash's victims, expressed cautious optimism about the DOJ's recent stance but emphasized the need for further action to hold Boeing accountable.
The DOJ's final decision on whether to file charges against Boeing is expected by July 7. As the situation unfolds, the aviation giant faces not only legal challenges but also continued damage to its reputation and business from the ongoing fallout of the 737 Max tragedies.
