Feds drop charges against Boeing over 737 Max crashes

FORT WORTH, Texas (CN) — A Texas federal judge approved an agreement Thursday between federal prosecutors and aerospace giant Boeing to dismiss criminal fraud charges stemming from a pair of 737 Max crashes in 2018 and 2019 that killed a combined 346 people.

Prosecutors accused Boeing of deceiving federal regulators about the safety of the Max’s flight control system, a key factor in the crashes. Boeing previously agreed to plead guilty to one charge of conspiracy to defraud the United States, but U.S. District Judge Reed O’Connor rejected the plea agreement.

The Justice Department reached a nonprosecution agreement with Boeing in May. Under the terms of the agreement, Boeing agreed to pay over $1.1 billion in fines, victim compensation and safety improvements.

Some of the families of the crash victims opposed the agreement, saying Boeing was being allowed to buy its way out of criminal prosecution and arguing that the statute of limitations has expired, meaning the government won’t be able to refile charges if Boeing violates the terms of the agreement. The families also objected to the lack of a requirement for an independent monitor.

O’Connor himself expressed reservations about the agreement, particularly the fact that Boeing would be allowed to pick its own compliance consultant instead of being subject to independent monitoring. He pointed out that the government previously found that Boeing had violated the terms of a prior deferred prosecution 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 operations." O’Connor also noted that the terms of the plea agreement had required an independent monitor and that he had rejected that agreement in part because it would have allowed Boeing to veto the government’s choice of monitor.

“The government’s position in this lawsuit has been that Boeing committed crimes sufficient to justify prosecution, failed to remedy its fraudulent behavior on its own during the DPA which justified a guilty plea and the imposition of an independent monitor, but now Boeing will remedy that dangerous culture by retaining a consultant of its own choosing,” the George W. Bush appointee wrote. “Given Boeing’s history related to this case (and the government’s continued failure to gain Boeing’s compliance), the [victims’ families] are correct that this agreement fails to secure the necessary accountability to ensure the safety of the flying public.”

Nonetheless, O’Connor accepted the agreement, finding that because the government had not acted in bad faith, had “given more than mere conclusory reasons for its dismissal” and had met its obligations under the Crime Victim’s Rights Act by conferring with the victims’ families, he did not have the authority to second-guess the prosecution’s judgment.

“Poor discretion may not be countered with judicial overreach,” O’Connor wrote. “The court acknowledges that it does not have the authority to deny leave because it disagrees with the government that dismissing the criminal information in this case is in the public interest.”

Boeing said in a statement to Courthouse News that it is committed to honoring the agreement.

“We are also committed to continuing the significant efforts we have made as a company to strengthen our safety, quality, and compliance programs,” a Boeing spokesperson said.

A Department of Justice spokesperson said the victims are at the heart of the settlement.

“Rather than allow for protracted litigation, this agreement provides finality for the victims and requires Boeing to act now,” a Justice Department spokesperson said. “As the court recognized, the department in good faith complied with its statutory obligations and met extensively with the crash victims’ families. While they are all experiencing grief, and nothing will diminish their losses, the victims have expressed a broad set of views regarding the resolution, ranging from support to disagreement. Ultimately, in applying the facts, the law, and department policy, we are confident that this resolution is the most just outcome.”

In a statement, Clifford Law Offices, a Chicago law firm that represents the families of victims of the 2019 Ethiopian Airlines Flight 302 crash, said the families intend to file an emergency appeal to overturn O’Connor’s order.

Canadian Paul Njoroge, whose wife and three young children died in the crash, said the dismissal felt like a betrayal by the justice system.

“We have only been consistent in demanding a day in court, the public against Boeing,” Njoroge said. “We have not gotten that. Our pursuit for justice isn’t about vengeance — it’s about truth, transparency, and public safety. When a company’s failures cost so many lives, ending a criminal case behind closed doors erodes trust and weakens deterrence for every passenger who steps onto a plane. The families have carried unbearable loss; the very least we deserve is a transparent process and real accountability. Anything less tells the world that powerful corporations play by different rules — and that cannot be the legacy of this tragedy.”