The US Department of Justice has announced that it has reached a deal with Boeing, which will allow the aircraft manufacturer to avoid prosecution over two deadly 737 MAX 8 crashes, which ultimately claimed 346 lives.
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Boeing & DOJ reach $1.1 billion non-prosecution agreement
Boeing and the DOJ have reached a non-prosecution agreement, which allows Boeing to avoid being labeled a felon. If finalized, this deal means that Boeing won’t face trial next month, as he been urged by families of many crash victims.
The DOJ has stated that it intends to file a motion to dismiss the case, once the agreement in principle is finalized. As the DOJ explains, it “is the Government’s judgment that the Agreement is a fair and just resolution that serves the public interest,” and that it “guarantees further accountability and substantial benefits from Boeing immediately, while avoiding the uncertainty and litigation risk presented by proceeding to trial.”
With this agreement, Boeing will have to “pay or invest” over $1.1 billion, including a $487.2 million criminal fine, though $243.6 million of that has already been paid in earlier agreements, and would be credited. It also includes a new $444.5 million fund for families of crash victims, and $445 million more on compliance, safety, and quality programs.
This is all in relation to the late 2018 Lion Air crash and early 2019 Ethiopian Airlines crash, which ultimately caused Boeing’s best selling narrow body jet to be grounded for nearly two years. While Boeing has been trying to put these crashes behind it, as you’d expect, families of crash victims have been trying to hold the airline accountable. In 2022, we saw a former chief pilot charged with fraud in relation to the plane’s development, but he was ultimately acquitted.
The DOJ claims that relatives of over 110 crash victims support the non-prosecution agreement, or “support the Department’s efforts to resolve the case pre-trial more generally.” Meanwhile other families aren’t so happy with the agreement, claiming that “this kind of non-prosecution deal is unprecedented and obviously wrong for the deadliest corporate crime in U.S. history.”
In 2021, Boeing already reached a settlement related to the accidents, whereby Boeing agreed to pay a $2.51 billion fine to avoid prosecution, including a $243.6 million criminal penalty, a $500 million fund for the families of crash victims, and $1.77 billion for airline customers.
However, in May 2024, the DOJ announced that Boeing had breached a deal to avoid prosecution, by not preventing violations of federal anti-fraud laws. Specifically, Boeing was accused of “failing to design, implement, and enforce a compliance and ethics program to prevent and detect violations of the US fraud laws throughout its operations.”
I’m not sure what to make of this agreement
I’m pretty sure most of us agree that Boeing has acted unreasonably and unethically with relation to the design of the 737 MAX, and putting profits over safety. On the surface, of course I’d love to see Boeing prosecuted, and held accountable as much as possible.
At the same time, I think this gets at the challenge with accountability for large corporations — what does it really mean when you charge a huge corporation with a felony, and who does it really punish? For example, the DOJ tried to bring charges against the chief pilot, who probably had the most knowledge of what was going on, but he was acquitted.
The issue is that criminal negligence requires intent, and it’s questionable whether that could be proven. So I can see merit to trying to come to an agreement that at least benefits the families as much as possible, even if it might not feel like as much of a win as being prosecuted for a felony.
Bottom line
Boeing will be avoiding prosecution in relation to two 737 MAX crashes. While Boeing was supposed to go to trial next month, that’s no longer expected to happen, thanks to a new $1.1 billion agreement. Of course I can understand how this resolution doesn’t feel like justice. At the same time, you don’t want the company to go to trial, only to then be acquitted.
What do you make of this outcome for Boeing?
Boeings top management at the time should have been and should be imprisoned for life, and or have 100% of their assets seized and made homeless and destitute. Only then will corporations maybe be deterred. Once again we’re show. The vileness of capitalism.
Now cue the pro-corporation Magats and their whining.
Boeing CEO at the time, Muilenburg, was forced to resign and walk away with $62,000,000 in stock and pension money. He did miss out on another $14,000,000 had he stayed. That should serve as a lesson to other CEOs.
Didn't do as well as Senator and former Governor Rick Scott who walked away from his CEO job at Columbia/HCA with $300 million in his pocket and sticking the company with a $1.7 billion fine for Medicare and Medicaid fraud.
It’s easy to have an opinion from the outside, but I think anyone would feel differently if it were their own family.
My attitude toward my family ranges from complete indifference to utter hostility. I'd be happy if some of them died and I was named as a beneficiary on the insurance policy and in the will.
It is all about Boeing avoiding being cast as being a "convicted felon". If a corporation is a "convicted felon", they are barred (by law) from receiving US Govt contracts. Dear leader wants his planes and rockets from Boeing....
oops...too many "beings and Boeings", my bad.
#bananarepublic
Finds do not change corporate behavior.
Prison time for executives changes corporate behavior.
Exactly, and it's what Boeing executives deserve.
How convenient???? Shell out a few bucks and shove it under the rug. One of these days, there gonna be so much under that rug that we gonna be tripping....
We already are tripping...
So Boeing promises to police itself better, doesn't implement any changes to police itself better, and the new admin just lets all that go. Did Boeing's CEO buy a bunch of Trumpcoin? Or more likely Trump gutting the DOJ means there's nobody left that's actually competent enough to keep the legal action going. Elections have consequences, and there's a good chance this is one of them.
Bribery and corruption!
Only in America is an alleged corrupt corporation allowed to put a price on human life.
Not only in America, but America definitely does it best
This. The difference between corruption in third world countries and the United States is that in the United States, the starting price is much higher
Airbus didn't invent bribery and corruption, but they sure went a long way to perfecting it. And that's been proven in courts of law around the world.
But how many passengers and crew have they killed ORD?
Are you convinced that Boeing is capable of putting their house in order and that recently produced aircraft are actually airworthy?
Yes, I'm convinced Boeing can stabilize itself to the standard by which they have historically set for themselves, and not do things like mammothly overstate the range of a plane to sell it, unlike Airbus.
Good luck with your assumption ORD, there are many who do not share your optimism.