A U.S. District Judge announced on Tuesday that a trial date has been set for June 23 regarding a criminal fraud case brought by the Justice Department against Boeing. The case is centered on allegations that the aerospace giant misled U.S. regulators about a critical system on the 737 MAX aircraft.
Last July, Boeing reached an agreement to plead guilty to a conspiracy charge related to criminal fraud following two deadly crashes involving the 737 MAX, which resulted in 346 fatalities. Previously, Judge Reed O’Connor had given both Boeing and the DOJ until April 11 to negotiate a new plea agreement after he rejected the earlier proposal, citing issues with a diversity and inclusion provision.
In comments earlier this year, Judge O’Connor remarked in Fort Worth, Texas, that Boeing’s actions could be considered “the deadliest corporate crime in U.S. history.”
Reports from the Wall Street Journal indicated on Monday that Boeing is attempting to retract its existing plea deal. The judge did not clarify the reasoning behind the newly set trial date or the withdrawal of the prior deadline for a new agreement.
BOEING’S DOUBLE DOSE OF GOOD NEWS: FIGHTER JETS AND CASH
On Tuesday, Boeing stated that it and the Justice Department “continue to be engaged in good faith discussions regarding an appropriate resolution of this matter.”
The DOJ has not released any immediate comments regarding the case.
The plea deal agreed upon last year involves Boeing committing $455 million towards safety improvements and compliance practices over a three-year period, alongside three years of oversight by an independent monitor, as part of their probation.
Family members of those who perished in the 737 MAX crashes have criticized the plea deal, calling it a “sweetheart” agreement that inadequately addressed their loss and failed to hold Boeing fully responsible.
Erin Applebaum, representing 34 families affected by the 2019 Ethiopian Airlines crash, urged the Justice Department “to stand on the right side of history, reject any further plea negotiations, and move forward with a full prosecution.”
She emphasized that “the families deserve their day in court, and this opportunity for justice must not be squandered.”
Should the plea deal go through, Boeing would be branded a convicted felon for its conspiracy to mislead the Federal Aviation Administration regarding faulty software linked to the flight control systems involved in the crashes during the certification process.
In May, the DOJ found that Boeing had breached a 2021 agreement that had previously protected it from prosecution related to the crashes. This revelation prompted prosecutors to initiate criminal charges against the company and formulate the current plea deal.
This action was taken following a notable incident on January 5, 2024, involving an Alaska Airlines aircraft, which revealed ongoing safety and quality concerns at Boeing.
Officials from the Trump administration have stated the need for stricter regulation of Boeing in light of its repeated missteps.
“We need to be tougher on Boeing. We need to be tougher on the industry,” remarked Steve Bradbury, who was recently confirmed as deputy transportation secretary.
