U.S. prosecutors are facing a critical deadline of July 7 to decide whether to criminally charge Boeing over its involvement in the fatal crashes of the 737 MAX aircraft. According to two sources familiar with the matter and correspondence reviewed by Reuters, prosecutors have been actively engaging with both Boeing and families of the victims.
Justice Department officials met with Boeing lawyers on Thursday to discuss the department’s finding that the company violated a 2021 deferred prosecution agreement (DPA). This agreement shielded Boeing from criminal prosecution for two 737 MAX crashes in 2018 and 2019, which tragically resulted in the deaths of 346 people.
Separately, federal prosecutors are scheduled to meet with family members of the victims on Sunday to provide updates on the progress of their investigation. The Justice Department, in an email reviewed by Reuters, has acknowledged a tight timeline for this crucial decision.
During their Thursday meeting, Boeing’s legal team from Kirkland & Ellis presented their case to officials from the Deputy Attorney General’s office, arguing that prosecution is unwarranted and that there’s no need to rescind the 2021 agreement. This type of appeal from companies under DOJ scrutiny is common during negotiations to resolve government investigations.
The email also highlighted the importance of seeking input from the families of the victims as the Justice Department deliberates its next steps. Prosecutors from the Justice Department’s criminal fraud division and the U.S. attorney’s office in Dallas will be present at the Sunday meeting.
Spokespersons from both the DOJ and Boeing have declined to comment on the matter.
The current situation stems from a January 5 incident involving a mid-flight panel blow-out on a Boeing plane, just two days before the company’s DPA was set to expire. This incident exposed ongoing safety and quality concerns within Boeing.
In May, officials determined that Boeing had breached the agreement, reopening the possibility of prosecution. The DOJ, in a court filing in Texas, stated that Boeing had failed to establish a robust compliance and ethics program to prevent and detect violations of U.S. fraud laws across its operations.
The 2021 settlement with the Justice Department was intended to shield Boeing from criminal prosecution for a charge of conspiracy to defraud the U.S. Federal Aviation Administration (FAA) arising from the 2018-2019 fatal crashes. As part of the agreement, Boeing agreed to overhaul its compliance practices, submit regular reports over a three-year period, and pay a $2.5 billion settlement.
While Boeing maintains that it has honored the terms of the settlement, prosecutors have recommended criminal charges against the company. Both sides are currently engaged in discussions to potentially resolve the Justice Department’s investigation, but there is no guarantee that officials will move forward with charges.
