The Justice Department currently has no plans to pursue criminal charges against Boeing concerning the two fatal crashes of its 737 Max aircraft, according to a source close to the situation. This tentative arrangement would enable Boeing to avoid entering a guilty plea.
Last summer, Boeing had agreed to plead guilty in response to a deal with the Justice Department after it was found that the company had violated a 2021 agreement related to the crashes. However, a judge rejected the plea deal, raising issues about diversity, equity, and inclusion, and set the stage for a potential trial for Boeing.
The fraud allegations revolve around Boeing’s development practices for the 737 Max. The U.S. government had accused the company of misleading regulators about a flight-control system that played a significant role in the two deadly incidents.
A definitive non-prosecution agreement has yet to be established, the source indicated. Neither the Justice Department nor Boeing provided immediate comments on the matter.
If the agreement is finalized, Boeing may offer compensation to the families of the victims from both crashes, as the incidents collectively resulted in the deaths of 346 individuals.
The preliminary agreement, initially reported by Reuters, would prevent Boeing from being classified as a felon, a designation that might have imposed restrictions on its work as a defense contractor.
Boeing stands as the largest exporter in the United States, producing commercial jetliners while also serving as a significant player in the defense sector. Recently, the Trump administration awarded the company a multibillion-dollar contract to develop a next-generation fighter jet.