Judge approves plea deal related to Boeing’s malfeasance that caused two 737-Max crashes killing 346
After further hearings during this past month, a judge ruled today to accept the plea deal worked out between Boeing and the Justice Department that allows the companyto avoid a criminal prosecution for its malfeasance and fraud that led to two 737-Max airplane crashes that killed a total of 346 people, thus dismissing the pending criminal charges.
A criminal conspiracy case was held against Boeing following the two fatal crashes of its 737 MAX 8 aircraft. The Department of Justice had initially accused Boeing of deceiving the federal regulators in relation to flight control system issues. Following the dismissal, Boeing has agreed that it would pay and or invest up to $1.1 billion in compensation to victims’ families, alongside other fines.
This dismissal comes almost a year after Boeing had reached an agreement with the DOJ, under which it would see the American plane manufacturer plead guilty and serve a term of probation. In a report by CNBC, the dismissal order acknowledged the victims’ families, many of whom opposed the dismissal, that the agreement could fail to secure the necessary accountability to ensure the safety of the flying public, and that the dismissal did not acknowledge that the manufacturer needed to be subject to independent monitoring.
It should be noted that Boeing has not only admitted to its corrupt behavior, it has already thumbed its nose at the Justice Department. As I noted in March,
In 2021 Boeing admitted to these charges as part of a plea deal with Justice, whereby prosecution would be deferred for three years if Boeing took certain actions to clean up its act. When that deal expired in 2024, Justice determined that Boeing had failed to live up to its agreement. Rather than go to criminal trial however government lawyers instead attempted twice to settle the case by having Boeing pay a big fine, first $243 million and then $455 million. In both cases the deals fell through when lawyers for the victims’ families objected.
The families still object, for the very rational reasons listed above. Boeing remains a very untrustworthy company, with a corporate culture that does not appear to require high standards, or even low standards, while allowing corruption and fraud to run rampant. This deal in many ways lets it off the hook.
At the same time, the deal is clearly an effort by Justice to give Boeing another opportunity to reform itself. We shall see if it works. Skepticism is certainly called for.
After further hearings during this past month, a judge ruled today to accept the plea deal worked out between Boeing and the Justice Department that allows the companyto avoid a criminal prosecution for its malfeasance and fraud that led to two 737-Max airplane crashes that killed a total of 346 people, thus dismissing the pending criminal charges.
A criminal conspiracy case was held against Boeing following the two fatal crashes of its 737 MAX 8 aircraft. The Department of Justice had initially accused Boeing of deceiving the federal regulators in relation to flight control system issues. Following the dismissal, Boeing has agreed that it would pay and or invest up to $1.1 billion in compensation to victims’ families, alongside other fines.
This dismissal comes almost a year after Boeing had reached an agreement with the DOJ, under which it would see the American plane manufacturer plead guilty and serve a term of probation. In a report by CNBC, the dismissal order acknowledged the victims’ families, many of whom opposed the dismissal, that the agreement could fail to secure the necessary accountability to ensure the safety of the flying public, and that the dismissal did not acknowledge that the manufacturer needed to be subject to independent monitoring.
It should be noted that Boeing has not only admitted to its corrupt behavior, it has already thumbed its nose at the Justice Department. As I noted in March,
In 2021 Boeing admitted to these charges as part of a plea deal with Justice, whereby prosecution would be deferred for three years if Boeing took certain actions to clean up its act. When that deal expired in 2024, Justice determined that Boeing had failed to live up to its agreement. Rather than go to criminal trial however government lawyers instead attempted twice to settle the case by having Boeing pay a big fine, first $243 million and then $455 million. In both cases the deals fell through when lawyers for the victims’ families objected.
The families still object, for the very rational reasons listed above. Boeing remains a very untrustworthy company, with a corporate culture that does not appear to require high standards, or even low standards, while allowing corruption and fraud to run rampant. This deal in many ways lets it off the hook.
At the same time, the deal is clearly an effort by Justice to give Boeing another opportunity to reform itself. We shall see if it works. Skepticism is certainly called for.
