Boeing will now be able to avoid prosecution for 737 Max crashes

The case involving Boeing 737 Max planes resulted in accidents with two planes, which caused 346 deaths.

Under the "agreement in principle," which has yet to be finalized, Boeing will pay and invest more than $1.1 billion, including an additional $445 million for the families of the crash victims, according to court documents released today.

In exchange, the Justice Department dropped the fraud charge in the criminal case against the aircraft manufacturer.

"Ultimately, applying the facts, the law, and Department policy, we are confident that this resolution is the most equitable outcome with practical benefits," a Justice Department spokesperson said in a statement.

"Nothing will lessen the victims' losses, but this resolution holds Boeing financially accountable, provides purpose and compensation to the families, and impacts the safety of future air travelers," he added.

Many family members of passengers who died in the crashes, which occurred off the coast of Indonesia and Ethiopia less than five months apart in 2018 and 2019, have spent years pushing for a public trial, the prosecution of former employees and harsher financial penalties for Boeing.

"While the Department of Justice has proposed a fine and financial restitution to the families of the victims, the families I represent say it is more important that Boeing be held accountable to the flying public," Paul Cassell, an attorney for many of the families, said in a statement earlier this week.

Boeing has been accused of misleading the US Federal Aviation Administration (FAA) about aspects of the Max before the agency certified the plane for flight.

Boeing failed to inform airlines and pilots about a new software system, called MCAS, that could lower the plane's nose without pilot intervention if a sensor detected the plane was about to stall.

The Max planes crashed after a faulty sensor reading pushed the nose down and the pilots were unable to regain control.

After the second crash, Max jets were grounded worldwide until the company redesigned MCAS to make it less powerful and use signals from two sensors, not just one.

Boeing avoided a lawsuit in 2021 by reaching a $2.5 billion settlement with the Justice Department that included an earlier fine of $243.6 million.

A year ago, prosecutors said Boeing violated the terms of the 2021 settlement by failing to make promised changes to detect and prevent violations of federal anti-fraud laws.

Last July, Boeing agreed to plead guilty to the fraud charge rather than face a potentially lengthy public trial.

But in December, U.S. District Judge Reed O'Connor in Fort Worth rejected the plea deal.

The judge said diversity, inclusion and equity, or DEI, policies in the government and at Boeing could make race a factor in choosing a monitor to oversee Boeing's compliance with the settlement.

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