Justice Department prosecutors are recommending criminal charges against Boeing for violating settlements related to two fatal crashes. Reuters reported on Sunday..
The department has a July 7 deadline to decide whether to file charges against the airline giant.
The 2021 settlement agreement came after about 350 people were killed in two deadly crashes linked to defects in Boeing 737 Max 8 planes in 2018 and 2019. The agreement granted the company immunity from criminal charges for fraud in exchange for a $2.5 billion fine, as well as a commitment to overhaul its compliance regime.
The Justice Department found last month that Boeing had violated the agreement, a decision the company disputes. Reuters reported that Boeing and the Justice Department are in discussions about how to proceed and have not made a final decision on whether to file charges.
Justice Department prosecutor Glenn Leon said in court last month that Boeing violated the agreement by “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.”
Boeing released a statement to The Hill last month saying it believes it remains in compliance with the agreement.
“We believe we have respected the terms of the agreement and look forward to the opportunity to respond to the Department of Defense on this matter,” the company said.
Senators grilled Boeing CEO Dave Calhoun about the airline’s settlement and other safety concerns at a Homeland Security subcommittee hearing last week. During his testimony, Calhoun apologized to the families of those killed in the two crashes.
“On behalf of everyone at Boeing, I personally apologize and am deeply saddened by your loss. Nothing is more important than the safety of the people who fly on our aircraft, and every day we strive to honor the memory of those we lost through our unwavering commitment to safety and quality,” Calhoun said.
The next day, a group of victims’ families released a letter to the Department of Justice urging it to pursue “aggressive criminal prosecutions” against Boeing.
“Boeing’s crimes are the worst corporate crimes in American history, and a maximum fine of more than $24 billion is legally justified and clearly appropriate, although the fine may be partially suspended if the funds are used to invest in adequate quality control and safety measures,” wrote attorney Paul Cassell on behalf of the victims’ families.
Casell also said the families “believe the Department of Defense should pursue criminal charges against those in charge at Boeing at the time of both crashes, including, in particular, former Boeing CEO Dennis Muilenburg.”
The looming charges add to Boeing’s ongoing crisis over aircraft safety, which has been in turmoil since January when a door on one of its 737 Max 9 planes blew off in flight. No one was injured, but the incident led to the grounding of the entire plane series and sparked a major investigation by the Federal Aviation Administration.
The investigation has found poor safety checks and manufacturing errors in Boeing’s manufacturing process, and the company has come under pressure from regulators and Congress to address the problems.
“Boeing has a problem with their safety culture. Their priorities are focused on production, not safety and quality,” FAA Administrator Michael Whitaker said in March. “So what we’re really focused on now is shifting that focus from production to safety and quality.”
The FAA said its six-week audit of Boeing “found multiple instances in which the companies allegedly failed to comply with manufacturing quality control requirements.”
The Hill has reached out to the Department of Justice for comment.
