Boeing reaches agreement with DOJ to avoid criminal guilty plea in 737 Max accidents

Boeing reached an agreement with the U.S. Department of Justice (DOJ) on Friday that will allow it to avoid a criminal guilty plea for the 737 Max fatal crashesoccurring in 2018 and 2019, which claimed the lives of 346 people.

The agreement, strongly opposed by many victims' families, includes a fine, a significant contribution to a compensation fund for the families and an investment in safety and quality programs, according to notes the New York Times.

Under the terms of the agreement, Boeing would admit to obstructing the Federal Aviation Administration (FAA), but this admission would not constitute a guilty plea, reversing an earlier agreement reached in the summer of 2024 under President Biden's administration in which the company had agreed to plead guilty to a felony.

In December 2024, the judge in charge of the case asked the parties to review that agreement, which led to the newly announced resolution.

For its part, the Justice Department defended the settlement as “this resolution is the most just outcome with practical benefits”, stating that “this resolution holds Boeing financially accountable, provides finality and compensation for the families and makes an impact for the safety of future air travelers.”

However, the proposal has generated strong opposition from the victims' families, who consider the settlement insufficient.

Paul Cassell, an attorney representing many of these families, called the non-prosecution agreement “unprecedented and obviously wrong for the deadliest corporate crime in U.S. history" and announced that his clients plan to object to it in court.

More investment

According to details of the settlement, Boeing will invest approximately $455 million in quality and safety programs and contribute $445 million to a compensation fund for the beneficiaries of accident victims.

In addition, the company will pay a fine of $487 million, half of which will be credited to it for a previous penalty.

However, the legal document outlining the settlement does not specify how these investments will be implemented. Since an incident in January 2024, when a control panel exploded on a Boeing flight, the company has already committed resources to improve its safety and quality programs.

The agreement also requires Boeing to hire a "compliance consultant" to issue recommendations and report to the government, although Cassell questioned the effectiveness of this measure compared to federal observer oversight, a mechanism with stronger legal precedent.

In addition, Boeing's board of directors is to meet with the victims' families.

Victims' families called for harsher penalties

The Justice Department's decision to avoid criminal prosecution has been seen as a blow to the victims' families, who had requested harsher penalties, including a $24 billion fine and criminal prosecution of Boeing executives, according to a letter sent to the department in June 2024.

Although the government claimed to have consulted with the families and noted that many supported or did not oppose the settlement, opposition from a significant segment of those affected persists, and they are expected to file formal objections with the court.