Two U.S. senators have urged the U.S. Department of Justice (DOJ) to prosecute Boeing for fraud related to the two fatal crashes of 737 Max aircraft in 2018 and 2019 and to reject a preliminary agreement that would allow the company to avoid a guilty plea. A lawyer representing the victims' families also advised the Department of Justice not to allow Boeing to escape criminal prosecution.
In a letter seen by Reuters, attorney Paul Cassell told the DOJ that sparing Boeing a trial or a guilty plea was a miscarriage of justice. He added that further concessions to the manufacturer would be "totally inappropriate." The letter also quoted District Judge Reed O'Connor, who had called this case the deadliest corporate crime in U.S. history.
Cassell's letter came about a week after the DOJ outlined a tentative non-prosecution agreement with Boeing in a meeting with the victims' families. However, a final decision on whether to finalize that agreement or take Boeing to court is still pending. Cassell argued to the DOJ that the government's proposal would effectively allow the aircraft manufacturer to become its own probation officer by bypassing an independent overseer and appointing its own compliance counsel.
Shortly after Cassell's letter, U.S. Senators Elizabeth Warren and Richard Blumenthal also called on the DOJ to prosecute the aircraft manufacturer for the tragic crashes and reject the deal. They stated that it would be a serious mistake to allow Boeing and its executives to evade responsibility. Warren and Blumenthal wrote: "The DOJ must not sign a non-prosecution agreement with Boeing that would allow the company to evade its responsibility for its failed corporate culture and for any illegal conduct that had deadly consequences."
Last year, Boeing agreed to plead guilty to one count of criminal conspiracy to defraud and pay a fine of up to $487,2 million. Cassell noted that then-Boeing CEO Dave Calhoun signed the 2021 deferred prosecution agreement. "Given Boeing's 'confession' to all relevant facts of the crime—signed by its CEO—the risk of acquittal at trial is essentially zero percent," he added.
After learning of the preliminary agreement last Friday, the families of the Max crash victims announced on Saturday that they would object to the deal. In a court filing, the DOJ stated that the families had until Thursday to submit written objections. The agency added that it had not yet made a decision on whether to finalize the agreement or go to court and would await final discussions with the families.
The Department of Justice explained to the families that the agreement would impose significant obligations on Boeing, including the statutory maximum penalty, required expenditures for compliance improvements, the engagement of an independent compliance consultant, and the establishment of another fund to provide additional compensation to the families. Boeing would reportedly have to pay an additional $2021 million in addition to the $500 million paid in 444,5. The new fund would be divided equally among the victims of the two crashes. The families also learned that the agreement would require the government to file a motion for consent to dismiss the pending criminal charges without prejudice under the Federal Rules of Criminal Procedure.
Despite the crashes, the Boeing 737 Max remains one of the most popular commercial jetliners, completing thousands of safe flights worldwide every day. As part of safety and quality improvements, Boeing aims to increase Max production to 38 units per month in the coming months. This is the production limit imposed by the FAA. Once Boeing can demonstrate it can maintain that level, it can request a lifting of the limit. If the company can maintain that pace, it also plans to add a fourth production line, according to Doug Ackerman, vice president of quality for Boeing Commercial Airplanes. In April, Boeing produced 31 Max aircraft, and sources familiar with the matter confirmed that the company is on track to reach 38 aircraft per month.