The US Justice Department has informed Boeing that it breached the terms of its 2021 agreement following a series of safety missteps, including an incident with an Alaska Airlines flight. Boeing had previously avoided criminal charges for two fatal 737 Max crashes by agreeing to pay $2.5 billion in penalties and improve its safety protocols. The Justice Department said Boeing is now subject to criminal prosecution for failing to uphold its obligations to prevent violations of US fraud laws throughout its operations.
In a letter to the federal judge overseeing the 2021 agreement, the Justice Department stated that Boeing breached its obligations by not implementing an effective compliance and ethics program to detect and prevent fraud violations. The department is conducting a new investigation into Boeing’s operations after an incident on an aircraft operated by Alaska Airlines, where a door plug blew off mid-flight. The prior agreement had resolved an earlier fraud investigation related to the development of the 737 Max aircraft.
Justice Department prosecutors informed U.S. District Judge Reed O’Connor that Boeing is now subject to prosecution for any federal criminal violations of which the United States is aware. This includes the offense charged in the 2021 agreement, as well as violations related to conduct described in the Statement of Facts included in the agreement. This is an ongoing story, and updates will be provided as more information becomes available.
