WASHINGTON — According to court documents filed Thursday, the US Justice Department has formally moved to dismiss a criminal fraud prosecution against Boeing and requested that a judge cancel an upcoming trial related to two plane accidents that killed 346 people off the coast of Indonesia and Ethiopia.
The agreement, revealed last week, will save the American aircraft manufacturer from criminal punishment for allegedly deceiving US authorities about the 737 Max airplane before the planes crashed less than five months apart in 2018 and 2019.
The “agreement in principle” will force the corporation to pay and invest more than $1.1 billion, including an additional $445 million for the crash victims’ families, in exchange for the criminal case being dismissed, according to court filings. Experts believe that dismissing the fraud accusation will help the manufacturer to avoid a potential criminal conviction, which might affect the company’s standing as a federal contractor.
U.S. District Judge Reed O’Connor of Fort Worth, Texas, will determine whether to accept the request to dismiss, accept the terms of the non-prosecution agreement, or cancel the trial. On Thursday, O’Connor ordered the lawyers to submit him with a briefing schedule on the government’s request by June 4.
Some relatives of the passengers killed in the crashes have advocated for a public trial, the prosecution of former business managers, and harsher financial penalties for Boeing. The Justice Department stated that the victims’ relatives had differing opinions about the proposed settlement.
Nadia Milleron, a Massachusetts resident whose 24-year-old daughter, Samya Stumo, died in the Ethiopia crash, said in an email Thursday that she was hurt by the Justice Department’s “false” statement that the agreement will secure meaningful accountability, deliver public benefits, and bring finality to a complex case whose outcome would otherwise be uncertain.
“This is not a difficult or complex case because Boeing signed a confession,” Milleron said the crowd. “There will be no accountability as a result of the NPA (non-prosecution deal).”
Boeing stated in a statement that it is dedicated to fulfilling its duties under the resolution, which include promises to further institutional reforms and investments, as well as further compensation for families of those killed in the two plane tragedies.
“We are deeply sorry for their losses, and remain committed to honoring their loved ones’ memories by pressing forward with the broad and deep changes to our company that we have made to strengthen our safety system and culture,” the statement read.
Attorney Mark Lindquist, who represents dozens of the victims’ families, said in a statement Thursday that while he had hoped for a more rigorous prosecution, he did not believe it would happen.
“At this point, I can only hope the criminal case and the lawsuits motivated Boeing to improve safety,” Lindquist told reporters. “That is what actually matters. We all want to go onto a Boeing plane and feel secure.”
Boeing was accused of deceiving the Federal Aviation Administration about certain characteristics of the Max before the plane was cleared for flight. Boeing failed to inform airlines and pilots about a new software system that might automatically turn the plane’s nose down if a sensor detected that the plane was about to enter an aerodynamic stall.
The Max jets crashed after a faulty sensor reading pulled the nose down, leaving pilots unable to retake control. Following the second crash, Max planes were grounded while the firm upgraded the software.
In 2021, the Justice Department charged Boeing with misrepresenting FAA regulators about the software and the amount of training required for pilots to fly the plane safely. The department agreed not to prosecute Boeing at the time in exchange for the corporation paying a $2.5 billion settlement, including the $243.6 million fine, and taking three years to comply with anti-fraud regulations.
However, federal prosecutors charged Boeing last year with violating the conditions of the 2021 agreement by failing to implement planned changes to detect and prevent violations of federal anti-fraud laws. Last July, Boeing chose to plead guilty to the felony fraud accusation rather than face a lengthy public trial.
In December, O’Connor rejected the plea bargain. The judge stated that the government’s and Boeing’s diversity, inclusion, and equity, or DEI, policies may result in race being considered when selecting a monitor to oversee Boeing’s compliance with the agreement.
According to court filings, the new deal requires Boeing to engage a “independent compliance consultant” who will make recommendations for “further improvement” and report back to the government.