Boeing Rejects DOJ's Accusation of Violating 737 MAX Settlement

Boeing recently informed the U.S. Justice Department (USDOJ) that it did not violate a deferred prosecution agreement following fatal crashes involving the 737 MAX, according to a source familiar with the matter. This comes after the Justice Department notified Boeing that it had breached the terms of the agreement, which was reached in the waning days of the Trump administration following two deadly 737 MAX crashes in 2018 and 2019.

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The Justice Department's determination that Boeing breached the terms of the agreement means that the aircraft maker could be prosecuted for the charge listed in the one-count criminal information that was filed at the same time as the deferred prosecution agreement in 2021. That document alleged that Boeing defrauded the Federal Aviation Administration in connection with the agency's evaluation of the Boeing 737 MAX.

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Boeing has maintained that it has honored the terms of the agreement and looks forward to the opportunity to respond to the Department on this issue. The company stated that it will continue to engage transparently with the Department, as it has throughout the term of the agreement. If the Justice Department stands by its position that Boeing breached the terms of the agreement, it will likely tear the deal up, exposing Boeing to at least one criminal count of deceiving its primary regulator, the Federal Aviation Administration. 

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Under the terms of the 2021 deferred-prosecution agreement, Boeing paid a $243 million criminal fine and admitted to deceiving the Federal Aviation Administration about the level of training needed to fly the new jet. The Justice Department's determination that Boeing breached the terms of the agreement is a significant development in the ongoing saga surrounding the 737 MAX crashes. It remains to be seen how the Justice Department will proceed and what, if any, punishment Boeing will face.


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