Boeing broke an agreement over the 737 Max crashes that killed 346 people, and could now be prosecuted, the Justice Department says
The DoJ says Boeing violated the terms of a 2021 agreement reached after two crashes involving the 737 Max, one in Ethiopia, and one in Indonesia.
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- In 2021, Boeing reached a deal with prosecutors after 346 people died in two 737 Max crashes.
- The Justice Department said Tuesday that Boeing violated that deal and is now subject to prosecution.
- It worsens the crisis at the planemaker which began with January's Alaska Airlines blowout.
Boeing could face criminal charges after the Justice Department determined the planemaker violated a deferred prosecution agreement (DPA).
The DPA, reached in 2021, meant Boeing didn't face charges related to the deaths of 346 people in two 737 Max 8 crashes in 2018 and 2019. As part of the settlement, Boeing paid $2.5 billion and promised to strengthen its compliance program.
The DPA expired just two days after January's Alaska Airlines blowout, which has renewed scrutiny of Boeing's quality-control processes. Safety investigators said the 737 Max involved had left Boeing's factory missing key bolts.
In a Tuesday court filing seen by Business Insider, the Justice Department said Boeing violated the DPA, "by failing to design, implement, and enforce a compliance and ethics program to prevent and detect violations of the US fraud laws throughout its operations."
It added: "For failing to fulfill completely the terms of and obligations under the DPA, Boeing is subject to prosecution by the United States."
The news amplifies the crisis at Boeing, which has seen its CEO resign and its reputation worsen with airline customers. Its share price is down 28% since the start of the year.
Boeing has until June 13 to respond to the DoJ. In a statement shared with BI, the planemaker said: "We believe that we have honored the terms of that agreement, and look forward to the opportunity to respond to the Department on this issue."
"As we do so, we will engage with the Department with the utmost transparency, as we have throughout the entire term of the agreement, including in response to their questions following the Alaska Airlines 1282 accident," it added.
The Justice Department is continuing to meet with the families of victims of the 2018 and 2019 crashes, as it determines whether to bring charges against Boeing.
Robert Clifford, an attorney for the families of victims of the 2019 Ethiopian Airlines crash, said in an email: "This is a way for Boeing to be held criminally responsible in court. It's what the families have wanted. They want answers as to what really happened in the crashes and for the safety of the public to be protected."
The Justice Department told the court it will decide whether to prosecute Boeing by July 7.