WASHINGTON- The Justice Department reached an agreement with Boeing that prevents criminal prosecution related to two 737 MAX crashes that killed 346 people in 2018 and 2019.
The aerospace manufacturer will pay over $1.1 billion under the settlement terms filed in federal court Friday (May 23, 2025).
Boeing Criminal Trial
Boeing must provide an additional $445 million specifically for crash victims’ families as part of the broader $1.1 billion package. The Justice Department agreed to dismiss fraud charges against the company in exchange for this financial commitment and compliance measures.
Boeing faced accusations of misleading FAA regulators about critical aspects of the 737 Max before flight certification.
The company concealed information about a new software system called MCAS from airlines and pilots. This system could force the aircraft’s nose down without pilot input when sensors detected potential aerodynamic stalls.
Two crashes occurred within five months in Indonesia and Ethiopia after faulty sensor readings triggered MCAS, pushing aircraft noses down while pilots struggled to regain control. Aviation authorities grounded Max jets worldwide until Boeing redesigned MCAS to use dual sensors and reduce system power.
Previous Legal Proceedings
The Justice Department initially charged Boeing in 2021 with deceiving FAA regulators about the undisclosed software and pilot training requirements.
Prosecutors agreed to suspend prosecution if Boeing paid a $2.5 billion settlement, including a $243.6 million fine, and implemented anti-fraud compliance measures for three years.
Federal prosecutors declared Boeing violated the 2021 agreement terms last year by failing to implement promised anti-fraud detection and prevention changes. Boeing agreed to plead guilty to felony fraud charges in July to avoid a public trial.
Court Rejection and New Agreement
U.S. District Judge Reed O’Connor rejected the plea deal in December, citing concerns about diversity, inclusion, and equity policies potentially influencing the selection of compliance monitors based on race.
The original agreement required an independent monitor to oversee Boeing’s safety procedures for three years.
The new settlement requires Boeing to retain an “independent compliance consultant” who will recommend improvements and report findings to the government instead of the previously proposed monitoring arrangement.
Victim Families’ Response
Family members of crash victims expressed mixed reactions to the proposed settlement. Attorney Paul Cassell, representing numerous families, called the non-prosecution agreement “unprecedented and wrong for the deadliest corporate crime in U.S. history.” Families plan to object to the deal and urge court rejection.
Javier de Luis, whose sister Graziella died in the Ethiopian crash, criticised the Justice Department for abandoning justice for victims.
He argued the settlement sends a dangerous message to corporations that safety violations result in minimal financial consequences.
Government Positions
Boeing declined to provide comments on the settlement announcement Friday. Justice Department officials defended the agreement as the most appropriate resolution given applicable facts, law, and department policy.
Prosecutors emphasised the deal provides financial accountability, family compensation, and enhanced aviation safety measures while acknowledging that no resolution can restore victims’ lives.
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