Boeing will avoid a criminal charge in the US linked to two deadly 737 Max crashes, after a court granted a request from the US government to dismiss the criminal case.
In his ruling, Judge Reed O'Connor stated he disagreed that dropping the charge was in the public interest but noted that his concerns did not give him sufficient reason to deny the proposal.
The decision marks a significant win for Boeing after the government accused it last year of violating a settlement related to the crashes, raising the threat of prosecution.
The dismissal had been opposed by some families of those who died in the accidents, who sought to hold Boeing accountable in court.
Lawyer Paul Cassell, representing some families, indicated plans to appeal the ruling, emphasizing, We believe that the courts don't have to stand silently by while an injustice is perpetrated.
Mr. O'Connor acknowledged the government's concerns about proceeding to trial were unserious and expressed skepticism that the new deal between the government and Boeing would ensure accountability for public flight safety. However, he ruled that he did not have authority to override the government's request, assuming they were acting in good faith.
The DOJ defended its agreement, highlighting discussions with crash victims' families who had varying opinions on the resolution. They stated that the new agreement provides finality for victims and compels Boeing to take immediate action.
Boeing affirmed its commitment to the agreement and continued efforts to enhance safety and compliance programs.
This ruling is another chapter in the ongoing legal dispute arising from two major crashes of the 737 Max in late 2018 and early 2019, which resulted in 346 fatalities. Following the incidents, Boeing faced charges of criminal fraud conspiracy, accused of hiding key information regarding its flight control software, which significantly contributed to the crashes. The company admitted to these allegations but previously avoided prosecution through a $2.5 billion settlement in 2021, which included pledges to improve safety practices.
The latest developments in the case follow an incident last year involving an unused door falling off a 737 Max mid-flight, which prompted the DOJ to allege that Boeing breached terms of the original settlement. In 2024, under the Biden administration, a new proposal suggested that Boeing plead guilty to the fraud charge while incurring further financial penalties and oversight by a court-appointed monitor.
However, Judge O'Connor rejected that deal in December, partly due to concerns regarding the selection of the monitor.
A new settlement proposed this year dismissed the criminal charge, relieving Boeing of criminal liability but still enforcing obligations for hiring an independent compliance consultant and making substantial financial commitments, including additional penalties and compensation for the victims' families.
Prosecutors justified their decision to dismiss the charge by citing meaningful progress made by Boeing in enhancing its anti-fraud and conspiracy programs this year.
