Boeing faces potential prosecution over 737 Max crashes

The U.S. Justice Department has found that Boeing violated a settlement that allowed the company to avoid criminal prosecution following two deadly crashes involving its 737 MAX aircraft in 2018 and 2019. Boeing failed to implement changes to prevent violations of federal anti-fraud laws, a condition of the 2021 settlement.

“The government has determined that Boeing breached its obligations” under the agreement it reached with the Justice Department in early 2021, “by failing to design, implement and enforce a compliance and ethics program to prevent and detect violations of the U.S. fraud laws,” prosecutors wrote in a letter to Federal District Judge Reed O’Connor in Texas.

This determination means that Boeing could face prosecution for any federal criminal violation known to the United States, including the fraud charge it sought to avoid through the $2.5 billion settlement in 2021.

The government’s next steps regarding legal action against the manufacturing giant remain uncertain. Boeing said it disagrees with the DOJ’s conclusion that it has violated the deal.

“We believe that we have honored the terms of that agreement, and look forward to the opportunity to respond to the Department on this issue,” spokeswoman Jessica Kowal said in a statement.