Summary
- Reports have indicated that United States prosecutors to bring criminal charges against Boeing for violating its agreement with the Department of Justice (DOJ).
- In May, the DOJ found that the aircraft manufacturer violated their settlement agreement.
- The victims’ families of the two fatal Boeing 737 MAX crashes requested that the DOJ impose a $24.7 billion fine on Boeing in June.
United States prosecutors have recommended that the US Department of Justice (DOJ) should press criminal charges against Boeing, with the recommendation coming shortly after victims of the two fatal Boeing 737 MAX crashes asked the DOJ to impose a $24.78 billion fine on the plane maker.
Prosecuting Boeing
As reported by Reuters, which cited sources familiar with the matter, US prosecutors have recommended senior DOJ officials to bring criminal charges against Boeing after they found that the aircraft manufacturer violated its settlement agreement with the DOJ.
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The company and the Department entered into a deferred prosecution agreement (DPA) in January 2021, following Boeing being charged with attempting to defraud the US. The DOJ imposed a $2.5 billion fine on the company, with Boeing paying a criminal penalty of $243.6 million, compensating Boeing 737 MAX customers – airlines – $1.77 billion, and setting up a $500 million fund that would be dedicated to the two fatal crashes’ victims’ families.
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Boeing 737 MAX Crash Victims Families Ask DOJ To Prosecute
The DOJ is still mulling what action to take against Boeing while the crash victim’s relatives press for criminal charges.
Violating the DPA
However, in May, the DOJ alleged that Boeing had violated the DPA since it failed to come up with and implement a compliance and ethics program to prevent and detect violations of US fraud laws in its operations. The DOJ came to a conclusion following the mid-air door plug blowout that happened in January.
Then, an Alaska Airlines Boeing 737 MAX 9 lost a door plug as it was climbing out of Portland International Airport (PDX). While the incident resulted in no injuries, it once again resulted in scrutiny of Boeing and its operations, especially the safety and quality of its commercial aircraft, including the 737 MAX.
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Since then, several whistleblowers have come out, alleging quality mispractices at Boeing and its supplier, which has been based at a former Boeing site, Spirit AeroSystems. As a result, David Calhoun, the now-outgoing President and chief executive officer (CEO) of Boeing, testified in front of the US Senate Permanent Subcommittee on Investigations on June 18.
“Before I begin my opening remarks, I would like to speak directly to those who lost loved ones on Lion Air Flight 610 and Ethiopian Airlines Flight 302. I want to personally apologize, on behalf of everyone at Boeing. We are deeply sorry for your losses.”
Despite Apology Boeing CEO Met With Outrage From 737 MAX Crash Victim Families At Senate Hearing
$24.7 billion fine
Shortly after Calhoun’s hearing about Boeing’s safety culture, Paul Cassell, the counsel for the families of 15 Boeing 737 MAX crash victims, wrote a letter to the DOJ, alleging that the two fatal crashes resulted in damages in excess of $12.3 billion, which would make a $24.7 billion fine justifiable.
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Still, Cassell outlined that the fine could be partially suspended if some of the funds were dedicated to improving safety and quality processes. At the same time, the victims’ families’ counsel asked the DOJ not to offer Boeing any concessions and instead reiterated that the families, invoking the Crime Victims’ Rights Act (CVRA), would request an audience with the DOJ to discuss any potential settlements.
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Families Ask DOJ To Fine Boeing $24.78 Billion For “Deadliest Corporate Crime In US History”
The fine could be reduced if the funds would be used to improve Boeing’s safety and quality management.