DOJ Moves to Drop Boeing Criminal Fraud Charge \ Newslooks \ Washington DC \ Mary Sidiqi \ Evening Edition \ The U.S. Justice Department is seeking to drop a criminal fraud charge against Boeing over two deadly 737 Max crashes. The agreement would require Boeing to pay over $1.1 billion, avoiding prosecution and a public trial. Victims’ families have criticized the deal as insufficient for true accountability.
Quick Looks
- DOJ asks judge to dismiss Boeing’s criminal fraud charge.
- Agreement includes $1.1 billion in penalties and investments.
- Boeing avoids public trial and possible conviction.
- Judge Reed O’Connor to review deal and set schedule by June 4.
- Families of crash victims express outrage over the deal.
- Critics say the agreement lacks meaningful accountability.
- Boeing pledges safety reforms and compensation to families.
- DOJ claims Boeing violated a 2021 settlement agreement.
Deep Look
In a significant development following years of legal and regulatory scrutiny, the U.S. Department of Justice has moved to formally dismiss a felony fraud charge against Boeing related to the 737 Max aircraft crashes that killed 346 people in 2018 and 2019. The decision, filed in court documents on Thursday, would halt an anticipated criminal trial and solidify a new agreement allowing Boeing to escape prosecution by paying over $1.1 billion in penalties and safety investments.
The crashes—Lion Air Flight 610 off the coast of Indonesia in 2018 and Ethiopian Airlines Flight 302 in 2019—prompted global outrage and a nearly two-year grounding of the 737 Max fleet. Investigators later discovered that a software system known as MCAS, which could automatically push the aircraft’s nose downward, malfunctioned after receiving incorrect sensor data, contributing to both tragedies. Pilots were unaware of the system due to Boeing’s failure to properly inform airlines and the Federal Aviation Administration (FAA).
Boeing was initially charged in 2021 with defrauding the FAA by withholding critical information about MCAS and the level of pilot training required for safe operation of the aircraft. The DOJ agreed at the time not to prosecute Boeing if it paid a $2.5 billion settlement, including a $243.6 million fine and compensation for victims’ families, and promised to implement anti-fraud measures over a three-year period.
However, in 2023, federal prosecutors said Boeing had violated the agreement by failing to implement key compliance reforms. As a result, Boeing agreed to plead guilty to a felony fraud charge. That agreement was ultimately rejected in December 2023 by U.S. District Judge Reed O’Connor, who raised concerns about the potential use of diversity, equity, and inclusion (DEI) considerations in the appointment of an independent compliance monitor.
Now, under the latest “agreement in principle,” Boeing will again avoid a public criminal trial. The company must invest over $1.1 billion, which includes an additional $445 million in compensation to the families of crash victims. It will also be required to appoint an “independent compliance consultant” who will review Boeing’s practices and provide recommendations for improvements. These will be reported to the government over the course of the agreement.
Legal experts have noted that a conviction could have jeopardized Boeing’s ability to serve as a federal contractor—something this new deal avoids. But the move has not been universally welcomed.
Many families of those killed in the crashes have expressed frustration and betrayal, viewing the non-prosecution agreement as an injustice that shields Boeing from full accountability. Some have pushed for a public trial and prosecution of Boeing executives involved in the original misrepresentations to regulators.
Nadia Milleron, whose 24-year-old daughter Samya Stumo died in the Ethiopia crash, blasted the Justice Department’s rationale for the deal. “This is not a difficult or complex case because Boeing signed a confession,” she said in an email Thursday. “There will be no accountability as a result of the NPA.”
The DOJ acknowledged in its filings that victims’ families had mixed views on the resolution, which now hinges on Judge O’Connor’s approval. The judge has requested a briefing schedule from attorneys by June 4, after which he will decide whether to accept the deal and formally dismiss the case.
Attorney Mark Lindquist, who represents many of the victims’ families, said that while he had hoped for a stronger prosecution, his focus remained on ensuring lasting safety improvements at Boeing. “At this point, I can only hope the criminal case and the lawsuits motivated Boeing to improve safety,” he said. “That’s what really matters. We all want to walk onto a Boeing plane and feel safe.”
In a statement, Boeing said it remains committed to its obligations under the resolution and expressed sorrow for the lives lost in the two crashes. “We are deeply sorry for their losses, and remain committed to honoring their loved ones’ memories by pressing forward with the broad and deep changes to our company that we have made to strengthen our safety system and culture,” the company said.
The case remains a powerful example of how corporate accountability, public trust, and regulatory oversight intersect in high-stakes aviation. As the aviation giant looks to move forward, the public—and grieving families—will be watching to see whether Boeing’s reforms go beyond corporate messaging and result in genuine, lasting change.
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