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The U.S. Department of Justice is urging a Texas judge to approve a proposed settlement with Boeing Co., which would allow the aerospace giant to avoid criminal prosecution related to two deadly crashes involving its 737 Max aircraft, Bloomberg News reported Wednesday.
In court documents filed Wednesday, federal prosecutors defended the agreement, saying it was negotiated in good faith and will lead to significant improvements in Boeing’s operations. The settlement follows years of legal scrutiny stemming from the 2018 and 2019 accidents, which together claimed 346 lives.
Relatives of those killed in the crashes have voiced strong opposition to the deal, arguing that it falls short of delivering accountability for the tragic events. In a filing last month, some family members asked the court to reject the agreement and called for the appointment of a special prosecutor to take over the case.
The government has made a deliberate, constitutionally authorized decision not to pursue prosecution, Justice Department attorneys wrote in the filing, adding that there is no legal foundation to override that choice or appoint a special prosecutor, and doing so would only provoke constitutional complications.
Prosecutors also pointed out that some victims’ families have expressed support for the settlement, emphasizing the diverse range of opinions among those affected by the crashes.
The Justice Department asked U.S. District Judge Reed O’Connor to dismiss the criminal case, contingent upon Boeing (NYSE:BA) paying more than $1.1 billion in fines and making structural changes to enhance safety and quality oversight. In exchange, the company would avoid further criminal charges.
A dismissal would conclude the prolonged legal battle over the 737 Max tragedies. It would also represent a shift from Boeing’s (NYSE:BA) previous stance; last year, the company had agreed to plead guilty to a conspiracy charge, but that arrangement was ultimately rejected by Judge O’Connor.
Under the current proposal, Boeing would formally acknowledge wrongdoing by admitting to conspiring to obstruct the Federal Aviation Administration’s Aircraft Evaluation Group. However, this acknowledgment does not equate to a guilty plea.
Prosecutors stated that they retain the right to revive criminal charges if Boeing fails to comply with the terms of the two-year agreement. Some victims’ families dispute whether that option is legally viable, citing concerns that the statute of limitations has already run out.
The proposed deal includes several financial commitments from Boeing:
- $487.2 million in penalties, half of which has already been paid
- $444.5 million for a fund to compensate the families of those killed in the crashes
- $455 million in additional spending to strengthen compliance, safety and quality programs
Boeing (BA) would also be required to bring in an independent monitor to oversee its efforts to improve compliance and ethics standards. This monitor would report findings directly to the government and make recommendations for further action, Bloomberg News reported.