Boeing 737 MAX victims’ families challenge $1.1 billion plea agreement

The plea agreement requires Boeing to plead guilty to a criminal fraud conspiracy charge

Families of victims in two Boeing 737 MAX crashes have asked a federal judge to reject a plea deal between Boeing and the U.S. Justice Department that would allow the company to avoid prosecution in a criminal fraud case.

The crashes in 2018 and 2019 killed 346 people.

The plea agreement, announced in July 2024, requires Boeing to plead guilty to a criminal fraud conspiracy charge. Under the deal, the company will pay $1.1 billion, including a $243.6 million fine, $444.5 million to a crash victims fund, and more than $455 million to improve compliance, safety, and quality programs.

Boeing had been scheduled to face trial on June 23 for misleading U.S. regulators about a key flight control system on the 737 MAX, its best-selling aircraft. The plea deal allows the company to avoid being labelled a convicted felon and removes the requirement for oversight by an independent monitor, though Boeing must hire a compliance consultant.

In a filing Wednesday, the families urged Judge Reed O’Connor to reject the deal. They argued that it is not in the public interest, does not impose enforceable obligations, and that the Justice Department has already committed not to prosecute Boeing further, even if the court rejects the plea.

They cited the judge’s 2023 statement that Boeing’s crime “may properly be considered the deadliest corporate crime in U.S. history.” If the Justice Department does not pursue prosecution, the families asked the judge to appoint a special prosecutor.

The Justice Department said the deal ensures accountability, provides immediate public benefits, and resolves a complex case with an uncertain outcome. It also said most families had already settled civil lawsuits and collectively received several billion dollars.

Monitoring Desk
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