U.S. Justice Department says Boeing violated deal that avoided prosecution after 737 Max crashes

Boeing faces potential criminal charges after violating settlement over 737 Max crashes, under scrutiny for safety concerns.

Boeing has violated a settlement that allowed the company to avoid criminal prosecution after two deadly crashes involving its 737 Max aircraft, the Justice Department told a federal judge on May 14.

It is now up to the Justice Department to decide whether to file charges against the aircraft maker amid increasing scrutiny over the safety of its planes. Prosecutors will tell the court no later than July 7 how they plan to proceed, the Justice Department said.

Boeing reached a $2.5 billion settlement with the Justice Department in January 2021 to avoid prosecution on a single charge of fraud — misleading regulators who approved the 737 Max. Boeing blamed the deception on two relatively low-level employees.

The manufacturing giant came under renewed scrutiny since a door-plug panel blew off a 737 Max jetliner during an Alaska Airlines flight in January. The company is under multiple investigations, and the FBI has told passengers from the flight that they might be victims of a crime.

Boeing didn’t immediately respond to a request for comment.

Glenn Leon, head of the Justice Department criminal division’s fraud section, said in the letter filed in Texas federal court that Boeing failed to make changes to prevent it from violating federal anti-fraud laws — a condition of the 2021 settlement.

The determination means that Boeing could be prosecuted “for any federal criminal violation of which the United States has knowledge”, including the charge of fraud that the company hoped to avoid with the $2.5 billion settlement, the Justice Department said.