The conspiracy conviction could have made the aerospace giant ineligible for US government contracts
A federal judge in Texas has granted the US government’s request to dismiss a conspiracy charge against Boeing stemming from two fatal 737 MAX crashes that together resulted in 346 fatalities, an outcome critics say spares the aerospace company from full criminal accountability.
Under the agreement announced by the US Department of Justice (DOJ), Boeing will pay approximately $1.1 billion in fines, compensation for victims’ families, and investments in safety improvements – in exchange for avoiding prosecution on a charge that it defrauded regulators by misleading them about key flight control software.
Judge Reed O’Connor of the Northern District of Texas approved the dismissal on Thursday, ruling that the government had not acted in bad faith and had met its obligations under the Crime Victims’ Rights Act – even as he expressed serious concern about the deal’s lack of a provision which would subject Boeing to independent monitoring.
The controversy dates back to the crashes of Lion Air Flight 610 in October 2018 and Ethiopian Airlines Flight 302 in March 2019 – both tied to the 737 MAX’s faulty MCAS flight control system. The two tragedies prompted a 20-month grounding of the aircraft and increased scrutiny of the company, including whistleblower allegations and suspicious deaths.
In 2021, Boeing entered a deferred prosecution agreement (DPA) after admitting to defrauding the Federal Aviation Administration during the 737 MAX certification process.
Boeing paid about $243.6 million in criminal penalties and more than $1.7 billion in related settlements at that time. However, in 2024, the DOJ found that Boeing had violated the terms of the DPA by failing to implement a proper compliance and ethics program.
The dismissal ensures that Boeing avoids the felony conviction that could have jeopardized its status as a government contractor, although civil lawsuits from crash victims continue to move forward.
Victims’ families have previously criticized the deal as “morally repugnant,” arguing that it allows Boeing to avoid true criminal responsibility despite the gravity of the crashes. Their attorney has vowed to appeal the decision.
Boeing and the DOJ insist that the financial settlement and promised reforms serve the public interest and bring closure to a complex case whose outcome might otherwise have been uncertain.
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