DOJ Considers Settlement to Dismiss Fraud Allegations Against Boeing

The U.S.Justice Department (DOJ) is mulling over a potential agreement that coudl lead to the dismissal of criminal charges against Boeing,just ahead of a trial set for June regarding claims that the company misled regulators about a crucial system in its 737 Max aircraft.

In a recent update on May 17, the DOJ revealed it had spent two hours discussing this possible “pretrial resolution” with families affected by two tragic crashes involving the 737 Max.This resolution would involve dropping fraud charges against Boeing before the June 23 trial in Texas while imposing additional financial penalties on the company. However, no final decision has been made yet about whether to accept this deal or proceed with court proceedings.

After their meeting with DOJ officials, family members expressed their desire for a trial instead. A representative for these families told reporters that dismissing charges would be disrespectful to those who lost their lives in these incidents. The allegations against Boeing include misleading the Federal Aviation Governance (FAA) regarding software that could automatically lower an aircraft’s nose without pilot intervention—a malfunction linked to both crashes in 2018 and 2019 that resulted in 346 fatalities.

Boeing previously sidestepped prosecution by agreeing to a $2.5 billion settlement with the DOJ back in 2021, which included commitments from Boeing to overhaul its safety practices and compliance measures. However, by May 2024, it was steadfast that Boeing had breached this agreement following an incident involving a faulty door plug on another model of its aircraft.

A new settlement proposal emerged from the DOJ in June 2024 allowing Boeing to plead guilty and pay nearly $487 million; however, this was turned down by a federal judge due to concerns about how diversity and inclusion policies might influence selecting an self-reliant monitor for compliance oversight. Unlike earlier proposals requiring admissions of guilt from Boeing, this latest pretrial option does not necessitate such an admission.

The DOJ plans to gather written feedback from victim families until May 22 before informing the presiding judge about its next steps regarding this case.