The U.S. Justice Department is proposing that Boeing plead guilty to breaching an earlier settlement after two crashes that killed 346 people, a move that would allow the planemaker to avoid a lawsuit. A lawyer for the victims says the families will fight it. The Department of Justice’s offer to Boeing is to plead guilty to a pending criminal charge (filed in 2021) of conspiracy to defraud the FAA, the U.S. air transport regulator, the families’ lawyer, Paul Cassell, told AFP. The families will vigorously oppose this agreement.
The victims’ families and their lawyers were briefed during a two-hour meeting on Sunday afternoon. The appointment of a supervisor and the imposition of a fine were also discussed, according to a statement from the lawyers. Boeing did not comment to AFP. Ultimately, it will be up to a federal judge in Texas to decide. He will have to decide whether to approve a federal settlement that ties his hands at sentencing and prevents him from imposing additional punishment or corrective measures, Cassell said.
A justice official conceded that there was a ‘strong interest’ from the families to go to court, but repeatedly stated that the department could not prove the charges beyond a reasonable doubt, the law firm said. The agreement could help Boeing avoid a criminal case. A conviction could bar the company from U.S. government and military contracts, which generated nearly a third of Boeing’s revenue last year. Boeing entered into a Deferred Prosecution Agreement (DPA) with U.S. authorities on January 7, 2021, which included a $2.5 billion fine and three years of probation. However, in mid-May, the Department of Justice reported that Boeing had failed to meet its obligations, which the aircraft manufacturer disputes. Last week, it was announced that U.S. prosecutors are recommending that the Department of Justice take Boeing to court.
In the 2021 agreement, the manufacturer had admitted to fraud during the certification of its 737 MAX 8 plane, which was involved in two fatal crashes that killed 346 people in 2018 and 2019. The plane was grounded in the United States and around the world for 20 months.