DOJ says Boeing violated $2.5B settlement to avoid prosecution

The Department of Justice (DOJ) told a federal judge on Tuesday that Boeing violated a settlement that granted immunity from criminal prosecution following two 737 Max plane crashes several years ago.

The Justice Department now needs to decide whether to press charges against the airline giant, according to the Associated Press. Prosecutors plan to notify the court of their plans by early July, the department said.

Glenn Leon, head of the Justice Department’s Criminal Fraud Division, said Tuesday. In a letter filed in federal court In Texas, Boeing announced that it has violated the terms of a $2.5 billion settlement it paid starting in January 2021 in connection with two 737 Max crashes in 2018 and 2019.

The report said Boeing entered into a deal to avoid prosecution for “failing to design, implement, and enforce a compliance and ethics program to prevent and detect violations of U.S. fraud laws throughout its business activities.” He said it was a violation.

The finding that Boeing violated the terms of the settlement by failing to make changes could subject Boeing to prosecution for “federal criminal violations known to the United States,” the Justice Department said.

Boeing continues to experience high-profile safety issues and public scrutiny, most recently in January when a door plug on a 737 Max 9 plane blew off during an Alaska Airlines flight.

Boeing acknowledged that it had received a communication from the Department of Justice regarding the alleged violation of the non-prosecution agreement and a request for action.

“We believe we are complying with the terms of the agreement and look forward to the opportunity to respond to the ministry on this matter,” the ministry said in a statement.

“In doing so, we will work with the Department with the utmost transparency, just as we have done throughout the life of the contract, including answering questions following the Alaska Airlines Flight 1282 incident.”