US Wants Boeing to Plead Guilty, Leaving Affected Families Enraged for Letting it Off The Hook

By Moon Harper

Jul 01, 2024 02:40 AM EDT

A photo depicting a court ruling — (Photo : Unsplash/Tingey Injury Law Firm)

The US Justice Department has given Boeing until the end of the week to decide whether to plead guilty or face a trial. Bloomberg first reported that this decision left affected families enraged, calling it a sweetheart plea to let Boeing off the hook.

Boeing's Fraud Conspiracy

The Department of Justice (DOJ) offers Boeing a plea deal that would enable the aerospace giant to avoid once again a trial over allegations of conspiracy to defraud the United States. Attorneys representing families of victims of two fatal Boeing 737 Max crashes were briefed on the DOJ's plans on Sunday afternoon.

The deferred prosecution agreement (DPA) was initially established before the Trump administration ended, charging Boeing with one count of conspiracy for allegedly misleading the FAA during its assessment of the new Boeing 737 MAX aircraft, resulting in the deaths of over 300 people, with the first occurring in Indonesia in October 2018 and the second five months later in Ethiopia.

As punishment, Boeing was fined $243.7 million and mandated to pay $1.77 billion in compensation to its airline customers and $500 million to the beneficiaries of the victims under the terms of the DPA. Boeing was also mandated to disclose fraud allegations, cooperate fully with government investigations, and refrain from committing any felony offenses, prompting the DOJ to defer criminal prosecution for three years.

A note to employees after the company was charged by the DOJ in 2021 reads that David Calhoun, Boeing's president and CEO, firmly believed entering into this resolution was the right decision. The resolution serves as a significant reminder of Boeing's obligation to transparency with regulators and the potential consequences the company faces if anyone fails to meet those expectations.

Victims Strongly Opposing The Sweetheart Plea

Under the proposed deal, Boeing would need to plead guilty to a conspiracy charge filed in January 2021 for allegedly misleading the FAA during its evaluation of the Boeing 737 Max aircraft. It would also be required to accept the appointment of an external corporate monitor, pay a fine of approximately $200 million, and undergo a three-year probationary period, ABC News reported.

The families, who are unhappy and angered because there is no accountability or admission from Boeing that its admitted crime caused the 346 deaths, have been urging the DOJ to take Boeing to trial and impose fines that could exceed $20 billion and will likely object before Judge Reed O'Connor and ask him to reject the plea deal if Boeing accepts it, Robert Clifford, lead counsel in the civil litigation against Boeing said.

The criminal charges and potential plea deal follow numerous safety failures at Boeing, leading to multiple federal investigations and strong criticism from airlines, customers, lawmakers, and regulators. Criminal charges against a major corporation like Boeing are uncommon and would significantly impact its already unstable financial state and further harm its reputation.

However, the families of the victims expressed anger that Boeing might avoid a trial, believing that the government is absolving the company of responsibility for the deaths of their loved ones, CNN reported.