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Boeing 737 Max: DOJ Deal Avoids Prosecution - News Directory 3

Boeing 737 Max: DOJ Deal Avoids Prosecution

May 25, 2025 Catherine Williams Business
News Context
At a glance
  • The agreement allows ‍Boeing to avoid a felony label ⁤but raises⁢ questions about‍ accountability for the⁤ 346 deaths in the 737 MAX crashes ⁢and the company's safety practices.
  • ⁤Justice Department (DOJ)‌ has⁤ reached an agreement ⁤in principle with Boeing that will allow⁤ the aerospace‍ giant to avoid prosecution related to the two fatal 737 MAX crashes⁣...
  • Under the agreement,⁢ Boeing will "pay ⁤or invest" over $1.1 billion, including a $487.2 million criminal fine, though $243.6 million already paid will be credited.The settlement also‍ includes...
Original source: cnbc.com

The DOJ reached a deal with Boeing to avoid prosecution related to ‌the 737​ MAX crashes, which killed 346 people.The agreement means the ⁢aerospace giant won’t face trial next month. Boeing ⁣will ‍pay over $1.1 billion in‌ fines and compensation following the Lion Air ⁢and Ethiopian Airlines crashes. Victims’ families, however, criticize the deal. Read more​ about the impact and accountability in this News Directory 3 report. Discover what’s next for Boeing.

Key Points

Table of Contents

    • Key Points
  • Boeing to Avoid ⁢Prosecution‍ in 737 MAX ⁤Crashes‍ Under DOJ Deal
    • Why it matters
    • timeline
    • What’s next
    • Further reading
  • DOJ, Boeing reach ‌deal to avoid 737‌ MAX prosecution.
  • Agreement follows two fatal 737 MAX crashes, killing‌ 346.
  • Boeing to pay over $1.1 ⁤billion in ‌fines and compensation.
  • Victims’ families criticize deal as insufficient accountability.
  • Boeing faces scrutiny over safety and compliance programs.

Boeing to Avoid ⁢Prosecution‍ in 737 MAX ⁤Crashes‍ Under DOJ Deal

⁤ Updated​ May 25, 2025
⁤

Why it matters

The agreement allows ‍Boeing to avoid a felony label ⁤but raises⁢ questions about‍ accountability for the⁤ 346 deaths in the 737 MAX crashes ⁢and the company’s safety practices.

timeline

  1. Oct. 29, 2018 — Lion Air ⁢737 MAX crashes.
  2. March 10,​ 2019 — Ethiopian Airlines 737 MAX crashes.
  3. Jan. 7, 2021 ⁣— Boeing reaches​ settlement⁢ with DOJ,​ avoiding prosecution.
  4. Jan. ‍5, 2024 — Door panel blows out on Alaska ​Airlines ⁣737‍ MAX 9.

The U.S. ⁤Justice Department (DOJ)‌ has⁤ reached an agreement ⁤in principle with Boeing that will allow⁤ the aerospace‍ giant to avoid prosecution related to the two fatal 737 MAX crashes⁣ that killed 346 people.The deal, announced Friday, means Boeing, a major‌ military contractor and U.S. exporter, will not face trial next month, as families ‌of the victims had requested.

Under the agreement,⁢ Boeing will “pay ⁤or invest” over $1.1 billion, including a $487.2 million criminal fine, though $243.6 million already paid will be credited.The settlement also‍ includes $444.5 million⁤ for a new fund for‌ crash victims ‌and $445 million for⁢ compliance, safety, and quality programs. ⁣the DOJ said the agreement is ‌a “fair and just⁢ resolution ⁣that serves the public interest” and guarantees accountability while avoiding litigation ⁢risks.

The crashes, involving a Lion Air flight‌ in⁤ October⁣ 2018 and an Ethiopian Airlines flight less than ‌five months later, led to a nearly two-year worldwide grounding ⁣of the ‌737 MAX. Boeing has been working to move past the incidents, but victims’​ families have criticized previous agreements as insufficient. In 2022, a former Boeing chief technical pilot⁤ was ‍acquitted⁣ on fraud charges related ⁤to the 737 MAX’s progress.

Paul Cassell,‌ a lawyer representing victims’ ​families, criticized the ‌deal, calling it⁢ “unprecedented and obviously ‌wrong for the deadliest corporate ​crime in‌ U.S. history.” ​He added that his clients would object and hoped ⁣the court would reject the agreement. The DOJ said that while some relatives support the ⁢agreement, others wont Boeing to⁢ stand trial.

​”This‌ kind of non-prosecution deal is unprecedented and obviously wrong ​for the deadliest corporate crime in U.S. history. My ⁣families will object and hope to convince the court to ‌reject it,” Paul ‌Cassell,lawyer for victims’ ​families ⁤ said.
⁣

In 2021, during the Trump ⁣administration, Boeing reached a settlement‍ to avoid prosecution, agreeing to pay a $2.51 billion fine. This included a criminal penalty, a fund for crash⁢ victims’ families,⁤ and compensation for airline customers.‌ The new fund will be ​in addition to the previously established $500 million.

The 2021​ settlement was set to expire shortly after a door panel blew ‌out on an Alaska Airlines 737 ⁤MAX 9 in January ⁢2024. U.S.‍ prosecutors later accused Boeing of violating the 2021 settlement by failing to establish a compliance and ethics ‌program.⁤ A federal judge rejected a subsequent plea deal, citing concerns with ‌diversity, equity, ‍and inclusion requirements for a corporate monitor.

the‌ U.S. government had accused Boeing of misleading regulators‌ about the flight-control ⁢system⁢ on the 737 MAX, which was implicated in the crashes. Messages revealed during investigations showed a former Boeing pilot boasting about deceiving regulators into approving ‍training material.

Family members holding photos of ⁢Boeing 737 MAX‌ crash victims during a⁤ Senate ⁤hearing in Washington, D.C.

What’s next

The DOJ intends to file a ‌motion to dismiss the case onc⁤ the agreement is finalized, expected by‍ the ‌end of ⁣next week. The ⁤court will then​ consider‌ whether to except the agreement,⁣ taking into account the ⁣objections of the ‌victims’⁣ families.

Further reading

  • DOJ:‍ Boeing Charged with 737 Max ‌Fraud Conspiracy

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