U.S. prosecutors are currently engaging with Boeing and the families of victims from two fatal crashes as the July 7 deadline looms for the Justice Department to decide on potential criminal charges against the aircraft manufacturer. According to sources and reviewed correspondence, Justice Department officials met with Boeing’s legal team on Thursday to discuss findings that Boeing violated a 2021 deferred prosecution agreement (DPA). This agreement had previously shielded Boeing from criminal prosecution related to the two 737 MAX crashes in 2018 and 2019, which resulted in the deaths of 346 people.
The Justice Department is working under a tight timeline and plans to meet with victims’ family members on Sunday to provide updates on the investigation. This meeting will include prosecutors from the DOJ’s criminal fraud division and the U.S. attorney’s office in Dallas. The input from the family members is being sought as officials consider their next steps.
During Thursday’s meeting, Boeing’s lawyers from Kirkland & Ellis argued that criminal prosecution is unwarranted and that the 2021 DPA should remain intact. Such appeals are common in negotiations to resolve government investigations. Despite Boeing’s stance that it has honored the terms of the settlement, U.S. prosecutors have recommended to senior Justice Department officials that criminal charges be brought against the company, citing a breach of the agreement.
The discussions are ongoing, and there is no certainty that charges will be pursued. The deliberations intensified following a mid-flight panel blow-out on a Boeing plane on January 5, just two days before the DPA was set to expire. This incident highlighted persistent safety and quality issues at Boeing.
Boeing was initially set to avoid prosecution over a conspiracy to defraud the U.S. Federal Aviation Administration (FAA) related to the fatal crashes. As part of the DPA, Boeing agreed to revamp its compliance practices, submit regular reports over three years, and pay $2.5 billion to settle the investigation. However, in May, officials determined that Boeing breached the agreement, thereby exposing the company to potential prosecution. The DOJ stated in a court filing in Texas that Boeing had failed to design, implement, and enforce a compliance and ethics program to prevent and detect violations of U.S. fraud laws throughout its operations.
The outcome of these discussions will determine whether Boeing faces criminal charges, adding another layer of complexity to the ongoing scrutiny of its compliance and safety practices.
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