Boeing's Fate Hangs in the Balance as Justice Department Weighs Criminal Charges
As the July 7 deadline for the Justice Department's decision on whether to criminally charge Boeing approaches, prosecutors have been engaging in discussions with the planemaker and the families of victims of the fatal 737 MAX crashes.
Meetings with Boeing and Victims' Families
On Thursday, Justice Department officials met with Boeing lawyers to address the government's findings that the company had violated a 2021 deferred prosecution agreement (DPA). The DPA was intended to shield Boeing from criminal prosecution over the two crashes in 2018 and 2019 that claimed 346 lives.
Separately, federal prosecutors are scheduled to meet with family members of the victims on Sunday to provide updates on the investigation's progress. The Justice Department's email to the families emphasized the tight timeline for the decision-making process.
Boeing's Defense and DOJ's Considerations
During Thursday's meeting, Boeing's lawyers presented arguments against criminal prosecution, asserting that the company's actions did not warrant tearing up the 2021 agreement. Such appeals from companies under investigation are common during negotiations with the DOJ.
The DOJ officials are seeking input from the victims' families to inform their decision-making process. Prosecutors from the Justice Department's criminal fraud division and the U.S. attorney's office in Dallas will be present at the Sunday meeting.
DOJ's Investigation and Potential Charges
U.S. prosecutors have recommended criminal charges against Boeing to senior Justice Department officials after concluding that the planemaker violated the 2021 settlement. However, discussions are ongoing, and there is no guarantee that charges will be filed.
The deliberations were prompted by a mid-flight panel blow-out incident on a Boeing plane on January 5, just days before the expiration of the DPA. The incident raised concerns about ongoing safety and quality issues at Boeing.
Deferred Prosecution Agreement and Its Implications
Boeing was poised to avoid prosecution for conspiracy to defraud the Federal Aviation Administration (FAA) in connection with the fatal crashes. The prosecutors agreed to drop the criminal charge if Boeing overhauled its compliance practices and submitted regular reports for three years. The company also agreed to pay $2.5 billion as part of the settlement.
However, in May, officials determined that Boeing had breached the agreement, opening the door to potential prosecution. The Justice Department alleged that Boeing failed to implement effective compliance and ethics programs to prevent and detect violations of U.S. fraud laws throughout its operations.
