The Department of Justice (DOJ) has informed families of victims from two tragic Boeing 737 MAX8 crashes that it intends to dismiss criminal fraud charges against the aircraft manufacturer. Families have expressed plans to contest this decision.
In a news release, Clifford Law Offices announced that the DOJ communicated its decision through a letter sent to the affected families on Thursday. The letter stated that the agency had filed a motion to dismiss the criminal fraud case involving Boeing.
Rather than pursuing criminal charges, the DOJ has opted for a non-prosecution agreement (NPA) concerning the two MAX8 crashes that occurred six years ago, resulting in the deaths of 346 individuals.
This notification was part of the federal Crime Victims’ Rights Act, which mandates that victims and their families be informed of significant developments in related legal proceedings.
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Pro bono attorney Paul Cassell, who serves as a professor at the S.J. Quinney College of Law at the University of Utah, represents numerous families impacted by the crashes. He has indicated to U.S. District Court Judge Reed O’Connor that they plan to contest the DOJ’s recently filed motion.
This communication follows nearly a week after the DOJ revealed it had reached a tentative agreement with Boeing, allowing the company to bypass criminal prosecution for allegedly misleading regulators about the 737 Max model prior to the fatal crashes.
As part of the settlement, Boeing is expected to pay $1.1 billion, which includes $445 million earmarked for a fund intended for the families of the victims, according to court documents disclosed by the DOJ last week.
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This agreement stipulates that the DOJ will dismiss the fraud accusations against Boeing.
As of now, the DOJ has not responded to requests for comments regarding this matter from Finance Newso Business.
The law firm noted that victim families had been seeking a meeting with U.S. Attorney General Pam Bondi since February 6, hoping for dialogue before any final decision was reached. However, they received no response by the time of the announcement.
| Ticker | Security | Last | Change | Change % |
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The DOJ emphasized that Boeing must enhance the efficiency of its anti-fraud compliance and ethics program and retain an independent compliance consultant. The agency expressed confidence that this resolution represents the most equitable outcome with practical advantages.
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Following two fatal crashes of the 737 Max in Indonesia and Ethiopia in 2018 and 2019, Boeing had previously agreed to plead guilty to a charge of conspiracy to commit fraud. The company also consented to pay a maximum penalty of $487.2 million and undergo three years of independent oversight.
The recent agreement has not garnered support from the victims’ families. “This kind of non-prosecution deal is unprecedented and clearly inappropriate for the deadliest corporate crime in U.S. history. My families will object and seek to persuade the court to reject it,” Cassell stated.
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Boeing has faced intensified examination by the Federal Aviation Administration (FAA) following a midair emergency in January 2024 involving a Max 9 aircraft missing four critical bolts and losing a door plug, as reported by Reuters. The FAA has since imposed a limit of 38 planes per month for production.
Last year, the DOJ found that Boeing had breached a 2021 agreement that provided the manufacturer protection from prosecution.
Finance Newso Business’ Louis Casiano contributed to this report.
