Boeing is set to avoid prosecution in a fraud case sparked by two fatal crashes of its bestselling 737 Max jet that killed 346 people, according to sources familiar with the matter.
The US Department of Justice is considering a non-prosecution agreement, relatives of the victims were told on Friday, through which the US aerospace giant would not be required to plead guilty.
Representatives of the crash victims’ families expressed outrage, describing the proposal as “morally repugnant” after a tense call with senior justice department officials.
Boeing declined to comment. The justice department did not immediately respond to a request for comment. The tentative deal was first reported by Reuters.
In October 2018, 189 people were killed when Lion Air flight 610 fell into the Java Sea off Indonesia. In March 2019, Ethiopian Airlines flight 302 crashed shortly after takeoff from Addis Ababa airport, claiming 157 lives.
The second crash prompted the worldwide grounding of the 737 Max for almost two years, and left Boeing scrambling to repair its reputation.
While Boeing initially resolved a criminal investigation in January 2021, prosecutors accused it of breaching the settlement in 2024. This led the justice department to offer the firm a controversial plea deal last summer.
In December, however, US district Judge Reed O’Connor in Texas rejected the agreement. He cited a diversity and inclusion provision related to the selection of an independent monitor.
While Boeing had agreed to plead guilty to a criminal fraud conspiracy charge and pay a fine of up to $487.2m during the final months of the Biden administration, O’Connor’s decision meant the Trump administration inherited the case.
Under Donald Trump, the justice department has been overhauled, and his administration has faced questions around how aggressively it intends to pursue big companies that break the law.
Sanjiv Singh, counsel for 16 families of crash victims, said: “We are appalled by this sudden possible retreat from criminal prosecution of Boeing. A non-prosecution agreement is morally repugnant and lacks the teeth and bite to cause fundamental change in Boeings safety practices.”
Shares in Boeing slipped 0.5% in New York.
