DOJ Prosecutors Urge Criminal Charges Against Boeing Over Settlement Violation

Justice Department prosecutors have recommended that Boeing face criminal charges, alleging the aerospace giant violated a settlement agreement related to two fatal crashes, according to Reuters. The department has a deadline of July 7 to decide whether to proceed with charges.

The 2021 settlement was established after two fatal crashes involving the Boeing 737 Max 8 aircraft, which resulted in the deaths of nearly 350 people in 2018 and 2019. Under the agreement, Boeing was shielded from criminal liability for fraud in exchange for a promised overhaul of its compliance system and a $2.5 billion fine.

Last month, the DOJ determined that Boeing had breached the agreement, a claim Boeing disputes. The company and the DOJ are currently negotiating next steps, and a final decision regarding charges is yet to be made, as reported by Reuters.

DOJ prosecutor Glenn Leon stated in court that Boeing violated the agreement by failing to develop, implement, and enforce a compliance and ethics program to prevent and detect violations of U.S. fraud laws throughout its operations.

Boeing asserted in a statement to The Hill that it believes it remains compliant with the agreement. “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,” the company stated.

During a recent Homeland Security subcommittee hearing, Senators interrogated Boeing CEO Dave Calhoun regarding the settlement and other safety concerns. Calhoun expressed deep regret to the families of those who perished in the two crashes. "I want to personally apologize, on behalf of everyone at Boeing. We are deeply sorry for your losses. Nothing is more important than the safety of the people who step on board our airplanes. Every day, we seek to honor the memory of those lost through a steadfast commitment to safety and quality,” he said.

Following Calhoun's testimony, a group of victims' families published a letter urging the DOJ to pursue "aggressive criminal prosecution" against Boeing. Attorney Paul Cassell, representing some of the families, argued that a maximum fine of more than $24 billion is justified and appropriate, although he suggested that part of this fine could be suspended if the funds were used for quality control and safety measures.

Cassell also emphasized that the families believe criminal charges should be brought against responsible corporate officials at Boeing during the time of the crashes, including former CEO Dennis Muilenburg.

This potential prosecution adds to Boeing's ongoing safety crisis. The company has been under scrutiny since January, when a door blew off a 737 Max 9 aircraft mid-flight. Although no injuries were reported, the incident led to the grounding of similar planes and initiated a significant Federal Aviation Administration (FAA) investigation.

The FAA’s investigation revealed lapses in safety checks and manufacturing errors in Boeing’s production process. Consequently, Boeing has faced intense pressure from regulators and Congress to address these issues. FAA Administrator Michael Whittaker stated in March, “There are issues around the safety culture in Boeing. Their priorities have been focused on production and not on safety and quality. And so, what we are really focused on now is shifting that focus from production to safety and quality.”

An FAA audit over six weeks found multiple instances where Boeing allegedly failed to meet manufacturing quality control requirements.

Why This Matters: The outcome of this case could significantly impact Boeing's future operations, compliance practices, and its overall reputation. It underscores the critical importance of corporate accountability and rigorous safety standards in the aviation industry.

Key Takeaways

• DOJ prosecutors recommend criminal charges against Boeing for settlement violations.
• Boeing disputes the DOJ’s findings and asserts compliance with the agreement.
• Senators have scrutinized Boeing’s CEO over safety and settlement issues.
• Victims' families are calling for aggressive criminal prosecution and hefty fines.
• An FAA investigation revealed significant safety and quality control lapses at Boeing.