Boeing Co. (NYSE:BA) faces a pivotal court hearing on Wednesday as families of 737 Max crash victims challenge the Department of Justice’s motion to dismiss criminal fraud charges against the aerospace giant.
Judge’s Decision Could End Criminal Case
U.S. District Chief Judge Reed O’Connor will consider whether to allow prosecutors to dismiss the felony conspiracy charge against Boeing related to the crashes that killed 346 people in Indonesia and Ethiopia between 2018 and 2019, reported the Associated Press.
The DOJ charged Boeing with conspiracy to commit fraud, alleging the company deceived FAA regulators about the Maneuvering Characteristics Augmentation System (MCAS) flight-control software implicated in both fatal crashes.
DOJ Offers Non-Prosecution Deal
The Justice Department and Boeing renegotiated a non-prosecution agreement requiring Boeing to pay $1.1 billion in fines, victim compensation, and safety investments. Federal prosecutors cited “significant changes” Boeing made to quality control programs since the original July 2024 plea deal.
According to DOJ filings, prosecutors believe securing a criminal conviction would be risky, while the revised agreement ensures “meaningful accountability” and “brings finality to a difficult and complex case.”
Families Demand Criminal Trial
Approximately 30 families, including Catherine Berthet, whose daughter Camille Geoffrey died in the Ethiopian Airlines crash, oppose the dismissal and want a special prosecutor appointed. “The fact that the DOJ, which had a guilty plea in its hands last year, has now decided not to prosecute Boeing regardless of the judge’s decision is a denial of justice,” Berthet stated.
MCAS System at Center of Case
The crashes stemmed from Boeing’s MCAS software, which repeatedly pitched aircraft noses down based on faulty single-sensor readings. The Transportation Department’s inspector general found Boeing failed to inform key FAA personnel about MCAS changes before regulators certified the aircraft and set minimal pilot training requirements, according to the report.
Boeing’s 737 Max fleet was grounded worldwide for 20 months following the second crash. The company reached a $2.5 billion settlement in 2021 but violated the agreement, according to DOJ findings that revived the criminal charge.
The case gained renewed attention after an Alaska Airlines door plug blew out in January 2024, though Boeing has since secured major orders, including a recent $36.2 billion deal with Korean Air for 103 aircraft.
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Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.
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