Boeing 737 MAX trial for ‘the deadliest corporate crime’ now has a start date

US District Judge Reed O'Connor set Tuesday June 23 as the date for the start of the trial in the criminal fraud case that the Department of Justice (DOJ) is pursuing against Boeing.

This prosecution relates to the aircraft manufacturer's alleged misrepresentations to regulators about the Boeing 737 MAX flight control system, involved in two fatal crashes that occurred in 2018 and 2019, which left a toll of 346 victims.

O'Connor, who previously called the case "the deadliest corporate crime in US history," made this decision abruptly, without explaining why he also withdrew the April 11 deadline he had given Boeing and the DOJ to negotiate a new plea agreement.

In July last year, Boeing had agreed to plead guilty to one count of conspiracy to commit criminal fraud, agreeing to pay a fine of up to $487.2 million. The agreement also included an investment of $455 million in security upgrades and compliance for three years of court-supervised probation, along with supervision by an independent monitor.

However, Judge O'Connor rejected that initial deal, criticizing a clause related to diversity and inclusion, leading to new negotiations. As The Wall Street Journal reported Monday, Boeing is now seeking to withdraw the existing plea agreement, which could further complicate the process.

About the accidents

The case has its roots in the tragic 737 MAX accidents: one in October 2018, when a Lion Air flight crashed in Indonesia, and another in March 2019, when an Ethiopian Airlines plane went down shortly after takeoff. Both incidents were linked to flaws in the aircraft's MCAS software, which Boeing is said to not have properly reported to the Federal Aviation Administration (FAA) during the certification process.

In 2021, the company had reached an agreement with the DOJ to avoid a lawsuit, but this was breached as determined by the prosecution in May 2024, following an incident in January of that year in which an Alaska Airlines Boeing 737 MAX suffered an explosion in a door panel in mid-flight.

Victims' families want justice

The victims' families have expressed frustration with the handling of the case. Erin Applebaum, the attorney for 34 families affected by the Ethiopian Airlines crash, urged the DOJ to reject any new plea agreement and proceed with a full trial, arguing that "the families deserve their day in court, and this opportunity for justice must not be squandered."

They also believe the previous settlement was too lenient and does not reflect the gravity of Boeing's actions, which, if convicted, would be marked as a convicted felon for defrauding the FAA.

Boeing, for its part, said Tuesday that it continues to "be engaged in good faith discussions” with the DOJ to resolve the matter, while the prosecution did not immediately comment.

The case has put not only the company under scrutiny, but also regulators and the airline industry's oversight system.

Steve Bradbury, deputy secretary of transportation, noted that "we need to be tougher on Boeing. We need to be tougher on the industry," reflecting a firm stance from the Republican administration.

The trial could set a significant precedent for corporate accountability in the United States as Boeing faces one of the deepest crises in its history.