The U.S. Department of Justice (DOJ) has reached an agreement with Boeing that will allow the aerospace giant to avoid a criminal trial for fraud in connection with the two tragic crashes involving its 737 Max aircraft, which killed 346 people between 2018 and 2019.
Under the preliminary terms of the deal, the company has agreed to pay more than $1.1 billion (€967.5 million), along with an additional $445 million (€391 million) in direct compensation to the victims’ families.
In exchange, the DOJ will drop the criminal fraud case against Boeing, sparing the company from a conviction that could jeopardize its status as a federal contractor.
“We believe this resolution is the fairest outcome with practical benefits,” said a DOJ spokesperson in a statement. “Nothing can undo the loss of life, but this agreement holds Boeing financially accountable, provides closure and compensation to families, and reinforces safety for future air travelers,” they added.
However, the decision has sparked outrage among some victims’ relatives, who argue the settlement sends the wrong message about corporate accountability and product safety. Many have called for a public trial, harsher financial penalties, and the prosecution of former company executives.
“This kind of non-prosecution deal is unprecedented and clearly inappropriate, given that this is the deadliest corporate crime in U.S. history,” said Paul Cassell, a lawyer representing several families. He added that they will ask the court to reject the agreement.
The crashes involved two newly delivered 737 Max aircraft—one in Indonesia in 2018 and the other in Ethiopia in 2019. In both cases, a faulty sensor reading triggered the aircraft’s MCAS software, which forced the plane into an uncontrollable nosedive.
Investigations revealed that Boeing had withheld critical information about the MCAS system from the Federal Aviation Administration (FAA), as well as from airlines and pilots. The software, designed to prevent aerodynamic stalls, could automatically push the plane’s nose down if it sensed a high angle of attack—without pilot input.
In 2021, the DOJ had already charged Boeing with misleading FAA regulators about the software and the level of training pilots needed to safely fly the aircraft. At the time, the company avoided criminal prosecution by agreeing to a $2.5 billion settlement and pledging to strengthen its compliance efforts over a three-year period.
However, after prosecutors determined that Boeing had failed to meet those commitments, the company agreed to plead guilty to criminal fraud to avoid a potentially lengthy public trial.
Even so, last December, a federal judge rejected the previous agreement, citing concerns over diversity, inclusion, and equity in the selection of the compliance monitor tasked with overseeing Boeing’s actions.
