The US Justice Department (DOJ) is urging Boeing to plead guilty to criminal fraud in relation to two fatal crashes involving its 737 Max jetliners, according to sources familiar with the matter. The proposed plea deal, described by some as a "sweetheart deal," includes a financial penalty, three years of probation, and mandatory independent safety audits. However, victims' families are calling for more severe repercussions.
Boeing has until the end of the week to respond to the plea offer, which demands compliance with anti-fraud laws under the supervision of an independent monitor for three years. The DOJ’s push follows accusations that Boeing violated a 2021 settlement agreement linked to the fatal crashes of Indonesia's Lion Air in October 2018 and Ethiopian Airlines in March 2019.
The initial settlement required Boeing to pay a $244 million (€227 million) fine and implement a new compliance system after admitting to misleading air-safety regulators about the 737 Max. The company blamed the fraud on two low-level employees.
In May, the DOJ accused Boeing of not honoring the settlement, citing failures in their compliance and ethics programs. The recent plea offer was disclosed to some relatives of the 346 victims during a video meeting, eliciting outrage and demands for a criminal trial and a $24.8 billion (€23 billion) fine. Massachusetts resident Nadia Milleron, who lost her daughter Samya Stumo in the second crash, voiced her frustration, stating, "This is just a reworking of letting Boeing off the hook."
If Boeing rejects the plea deal, the DOJ plans to take the company to trial, although both parties have refrained from commenting. The plea agreement would remove the power of US District Judge Reed O'Connor to increase Boeing's sentence upon conviction, prompting some families to urge the judge to reject any deal Boeing might accept.
Paul Cassell, a lawyer for victims' families, criticized the deal for failing to acknowledge that Boeing's actions led to the deaths of 346 people. Similarly, Sanjiv Singh, representing families of Lion Air crash victims, called the offer "extremely disappointing" and likened it to a "sweetheart deal." Legal experts note that Boeing's significant contracts with the Pentagon and NASA could be jeopardized by a conviction, though federal agencies often grant waivers to keep companies eligible for government contracts.
The DOJ has shown no intent to prosecute current or former Boeing executives, another demand from the families. The impact of a plea deal on other Boeing investigations, such as the incident involving a door plug blowout on a Boeing Max 9 during an Alaska Airlines flight in January, remains uncertain.
In a parallel development, Boeing announced plans on Monday to acquire aerospace supplier Spirit AeroSystems for $4.7 billion (€4.4 billion) to enhance safety. Boeing CEO Dave Calhoun stated, "By reintegrating Spirit, we can fully align our commercial production systems, including our Safety and Quality Management Systems, and our workforce to the same priorities, incentives and outcomes—centered on safety and quality."
As the DOJ and Boeing navigate the proposed plea deal, the families of the crash victims continue to seek justice and accountability for the tragic loss of their loved ones.
Source: Euronews