The Justice Department is investigating whether Boeing will be prosecuted for violating the terms of a 2021 deferred prosecution agreement. This agreement followed two crashes of 737 Max jets that killed 346 people, and Boeing agreed to pay a $2.5 billion settlement and comply with custodial stipulations to avoid a fraud conspiracy charge. Federal prosecutors now claim that Boeing breached its obligations under the agreement by failing to implement an ethics program to prevent violations of fraud laws. The government is considering prosecuting Boeing for any federal criminal violation as a result.
Investigators are no longer restricted by the 2021 agreement and are continuing their probe into Boeing. The company has until June 13 to respond to the Justice Department’s allegations, which will be taken into consideration as prosecutors decide their next steps. This development comes after the cabin door of an Alaska Airlines plane blew off mid-flight, leading to congressional and federal investigations. There were concerns that the incident could affect the deferred prosecution agreement, but the letter from the Justice Department did not mention this specific event.
Boeing has stated that it believes it has complied with the terms of the agreement and looks forward to responding to the Department’s allegations with transparency. A former quality manager at a Boeing supplier had previously blown the whistle on problems found while inspecting the 737 Max fuselages, including issues around the aircraft door panel that flew off the Alaska Airlines flight. Families of some 737 Max crash victims recently met with Justice Department officials for an update on the case against Boeing. The Justice Department has indicated that they will continue to work with the victims’ families in addressing the breach determination and holding Boeing accountable.
The Justice Department’s determination and potential prosecution of Boeing is seen as a positive step by the victims’ families and their representatives. Further action is expected from the DOJ to address Boeing’s alleged ongoing criminal conduct. The Justice Department declined to comment further on the matter. Boeing will have an opportunity to respond to the Justice Department’s allegations, and their response will influence the Department’s next steps in the case. This investigation follows the previous settlement agreement made in 2021 to address the consequences of the 737 Max crashes.
