The U.S. Justice Department has reached a tentative agreement with Boeing to resolve criminal charges linked to two deadly 737 Max crashes. The crashes, in Indonesia in 2018 and Ethiopia in 2019, killed 346 people after software failures caused the planes to nosedive. The deal aims to avoid a trial by having Boeing pay over $1.1 billion in penalties and an additional $445 million to victim families.
Under this proposed settlement, the Justice Department will drop a fraud case against Boeing. The agreement protects Boeing from a criminal conviction that could risk its status as a federal contractor. A Justice Department spokesperson called the deal the “most just outcome with practical benefits.” They noted that while no payment can replace lost lives, the settlement provides accountability, compensation, and steps toward improved aviation safety.
Families of the crash victims have strongly opposed the deal. Many had sought a public trial and prosecution of Boeing executives. Paul Cassell, a lawyer representing some families, described the agreement as “obviously wrong” and “unprecedented for the deadliest corporate crime in U.S. history.” He confirmed plans to challenge the settlement in court.
Investigations revealed that Boeing misled the Federal Aviation Administration (FAA) about the MCAS software system. Designed to prevent stalls, MCAS could force the plane’s nose down without pilot control. Boeing failed to inform regulators and pilots about the system’s risks and necessary training.
In 2021, Boeing avoided prosecution by agreeing to a $2.5 billion settlement and a three-year compliance program. However, federal prosecutors later found Boeing had violated those terms. This led to new fraud charges and a proposed guilty plea, which a judge rejected in December over disputes about appointing a compliance monitor.