Boeing has struck a deal with the U.S. Justice Department to avoid criminal charges over the 737 Max tragedies, agreeing to pay over $1.1 billion in penalties, victim support, and safety reforms.
The U.S. Justice Department said Friday it reached an agreement with Boeing that will allow the aerospace giant to avoid a criminal trial. The company had been accused of deceiving regulators prior to two fatal crashes involving its 737 Max jets that claimed 346 lives in 2018 and 2019.
Under the proposed deal, Boeing will pay or invest more than $1.1 billion. This includes a $487.2 million criminal fine, although $243.6 million already paid under a previous settlement will be credited. The company must also allocate $444.5 million to a fund for victims’ families and invest $445 million into improving safety, compliance, and quality control programs.
In a court filing, Justice Department attorneys said the agreement ensures accountability and immediate public benefit, while eliminating the uncertainties of going to trial.
The non-prosecution agreement would shield Boeing from being officially labeled a felon and cancels a trial that had been set for next month. As a major military contractor and one of America’s top exporters, such a label could have led to severe consequences.
Families of the crash victims, however, expressed outrage over the deal. Paul Cassell, an attorney representing several families, argued that Boeing deserves to face trial. “Dropping the case disrespects the memories of the 346 victims who died due to Boeing’s lies,” he said.
The Justice Department recently met with families to present the terms of the agreement. While officials argue the resolution brings timely support and reform, relatives continue to demand tougher penalties and accountability for former Boeing executives.
Boeing has not yet commented on the proposed agreement, which must still receive final court approval.
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