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yesterday

Justice Department asks court to drop Boeing 737 MAX fraud charge

The settlement would let Boeing escape a felony conviction, providing compensation and safety upgrades despite victims’ families’ objections.

The Boeing 737 MAX aircraft is displayed at the Farnborough International Airshow, in Farnborough, Britain, July 20, 2022. REUTERS/Peter Cziborra/File Photo
A mourner lays flowers at the Memorial Arch during a visit to the crash site of Ethiopian Airlines 737 Max flight that crashed on March 14, 2019.
FILE - The Boeing logo is displayed at the company's factory, Sept. 24, 2024, in Renton, Wash. (AP Photo/Lindsey Wasson, File)
Chris Moore holds a photo of his daughter Danielle Moore, who died in the crash of Ethiopian Airlines flight 302, during a US Senate Homeland Security and Governmental Affairs Subcommittee on Investigations hearing.

Overview

  • The Justice Department on May 29 filed a motion in Fort Worth to dismiss Boeing’s criminal fraud charge tied to misleading the FAA before the 2018 and 2019 737 MAX crashes.
  • Under the nonprosecution agreement Boeing will pay $243.6 million in fines, $444.5 million into a fund for victims’ families and invest $455 million in compliance and safety programs.
  • Dismissing the charge would spare Boeing a felony conviction that could have jeopardized its federal contracting status pending Judge Reed O’Connor’s decision on the motion.
  • Relatives of crash victims, including Nadia Milleron whose daughter died in the Ethiopia crash, say the deal lacks real accountability and some are calling for a public trial.
  • Boeing must appoint an independent compliance monitor to oversee safety reforms as the court considers finalizing the deal.