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Boeing Will Likely Avoid Criminal Charges After Violating $2.5 Billion Settlement Linked To Fatal Crashes, Report Says

US prosecutors are recommending to senior officials at the Department of Justice (DOJ) that criminal charges be brought against aviation giant Boeing, according to two sources cited in a Reuters report late on Sunday.

Reuters

US prosecutors have recommended that the Department of Justice(DOJ) bring criminal charges against airline manufacturer Boeing, according to a Reuters report published Sunday.

US prosecutors have recommended that the Department of Justice(DOJ) bring criminal charges against plane manufacturer Boeing, according to a Reuters report published Sunday.

It followed a weekend of uncertainty. On Friday, the New York Times, with reference to its own sources, reported that Boeing is expected to avoid criminal prosecution for violating a 2021 settlement with the DOJ in relation to two fatal crashes in 2018 and 2019.

On Friday, the New York Times reported that Boeing is expected to avoid criminal prosecution for violating a 2021 settlement with the DOJ concerning fatal plane crashes in 2018 and 2019.

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According to the 2021 deal, Boeing was to pay $2.5B — some of which was to compensate the relatives of victims of the two crashes — as well as to overhaul its safety standards. While the DOJ ruled that Boeing violated that agreement in May, the Times reported Friday that criminal prosecution was considered too risky and the DOJ was weighing giving Boeing another deal.

In 2021, Boeing agreed to pay $2.5B — some of which was to compensate victims' relatives and overhaul its safety standards. While the DOJ ruled that Boeing violated the settlement terms in May, criminal prosecution was reportedly considered too risky.

However, hours later, that report was disputed Glenn Leon, chief of the DOJ's fraud unit. In an email seen by Reuters from Leon to lawyers representing the families of victims, he said: "The department has not made a decision on how to proceed or whether to pursue prosecution of Boeing."

Glenn Leon, chief of the DOJ's fraud unit, disputed the Times' report, stating: "The department has not made a decision on how to proceed or whether to pursue prosecution of Boeing."

Reuters followed that up with Sunday's report that stated US prosecutors are in fact recommending the prosecution. However, the two sources warned that discussions to reach a resolution between Boeing and the DOJ are ongoing and there is no guarantee it will move forward with criminal charges.

However, the two sources cited in Reuters' Sunday report maintained that discussions to resolve the DOJ's investigation are ongoing, and there's no guarantee it will move forward with criminal charges.

A spokesperson for the DOJ declined to comment.

This comes after families of the victims urged the DOJ to seek a fine of $25B against Boeing and to pursue a criminal prosecution, arguing the company committed "the deadliest corporate crime in US history."

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While US prosecutors may be recommending charges, Boeing disputes that it violated the 2021 agreement. Realistically, Boeing will not face criminal charges. For one, they have large contracts with the US Department of Defense and any conviction could put those deals in jeopardy. It's much more likely that they'll extend the previous DOJ deal, with some stricter terms, or strike a brand new agreement.

US prosecutors recommend Justice Dept. criminally charge Boeing

It looks like Boeing will finally face criminal prosecution for the two plane crashes that killed a total of 346 people. After the DOJ found in May that Boeing had violated the terms of the 2021 settlement, not only are the original charges on the table again, but the DOJ may introduce new ones as well. Boeing has got away with this for too long and it's time it's held culpable for its crimes.

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US prosecutors recommend criminal charges against Boeing over 737 MAX crashes that killed 346 people

There's a 1% chance that Boeing will release a new midsize aircraft, likely called the 797, into commercial service before 2030, according to the Metaculus prediction community.

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Boeing 797 by 2030?

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Report: US Prosecutors Recommend Boeing Criminal Charges

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While prosecutors may recommend charges, Boeing didn't violate the 2021 agreement. Moreover, it has signed contracts with the US Department of Defense, and any conviction could jeopardize those deals. It's much more likely that the DOJ will give Boeing another deal with stricter terms.

It looks like Boeing will finally face criminal prosecution for the two plane crashes that killed 346 people. After the DOJ found in May that Boeing had violated the terms of the 2021 settlement, not only are the original charges on the table again, but the DOJ may also introduce new ones. Boeing has gotten away with this for too long, and it's time the company is held guilty of its crimes.

Report: Criminal Charges Recommended Against Boeing

Report: USCriminal ProsecutorsCharges RecommendRecommended Against Boeing Criminal Charges

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