The U.S. Department of Justice on Thursday asked a judge to dismiss a criminal fraud charge against Boeing Co. after reaching a $1.1 billion settlement with the planemaker over two fatal 737 MAX crashes that killed 346 people in 2018 and 2019.
Under the agreement, Boeing avoids a felony conviction but will pay a $243.6 million fine and an additional $444.5 million into a crash victims’ fund, to be distributed evenly among victims’ families. The company will also invest more than $455 million to strengthen compliance, safety, and quality control programs.
The crashes in Indonesia and Ethiopia led to global grounding of the 737 MAX, Boeing’s top-selling aircraft, and sparked investigations into the company’s conduct. Prosecutors had accused Boeing of misleading regulators about a key flight control system involved in both incidents.
The settlement, finalized Thursday with the signature of Boeing CEO Kelly Ortberg, forestalls a trial that had been set to begin June 23. The Justice Department said the deal provides “meaningful accountability” and “substantial and immediate public benefits,” while acknowledging the legal uncertainty of a courtroom outcome.
Boeing had agreed last year to plead guilty to a criminal fraud conspiracy charge. However, the resolution drew sharp criticism from victims’ families and lawmakers. Some families’ attorneys have pledged to challenge the agreement, calling for a full prosecution.
Two U.S. senators also urged the Justice Department not to abandon the case.
As part of the deal, Boeing will not be subject to oversight by an independent monitor but will be required to hire a compliance consultant. The company’s board of directors must also meet with the families of the crash victims.
The Justice Department noted that most families have already settled civil lawsuits with Boeing, receiving a combined total of several billion dollars.
“Boeing is committed to complying with its obligations under the resolution reached today, which include a substantial additional fine and commitments to further institutional improvements and investments,” the company said in a statement.
In a 2023 ruling, U.S. District Judge Reed O’Connor described Boeing’s conduct as “the deadliest corporate crime in U.S. history.”
