Boeing Reaches $1.1 Billion Settlement with DOJ Over Deadly 737 Max Crashes

TDT | Manama

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Boeing has agreed to a $1.1 billion settlement with the U.S. Department of Justice (DOJ), allowing the aerospace giant to avoid criminal prosecution related to two catastrophic 737 Max crashes that claimed 346 lives.

The agreement, revealed in court documents on Friday, stems from the 2018 Lion Air Flight 610 crash in Indonesia and the 2019 Ethiopian Airlines Flight 302 crash. The twin tragedies, both involving Boeing’s 737 Max aircraft, triggered global outrage and led to a nearly two-year grounding of the jet model.

According to the DOJ, the settlement resolves allegations that Boeing misled federal regulators about critical safety issues with the aircraft’s flight control system before the accidents occurred. The deferred prosecution agreement means Boeing will not face a criminal trial, provided it complies with the terms laid out in the deal.

Of the $1.1 billion settlement, $445 million will be allocated as compensation to the families of crash victims. The remaining funds are intended to strengthen Boeing’s internal compliance, safety, and quality assurance programs.

However, the agreement has sparked fierce criticism from victims’ families and their legal representatives, who argue that the deal offers financial reparations without true accountability.

“This kind of non-prosecution deal is unprecedented and obviously wrong for the deadliest corporate crime in U.S. history,” said Paul Cassell, an attorney representing several of the families. “My clients will object and ask the court to reject it.”

Cassell emphasized that for many families, public accountability through a criminal trial is more important than financial compensation. “It is more important for Boeing to be held accountable to the flying public,” he added.

Boeing has declined to comment on the settlement.

In its court filings, the DOJ defended the resolution, asserting that it had carefully considered the facts, applicable legal standards, and the perspectives of affected families. Prosecutors argued that the settlement “holds Boeing financially accountable, provides finality and compensation for the families, and makes an impact for the safety of future air travelers.”

Despite years of advocacy from victims’ families calling for criminal accountability for former Boeing executives, federal prosecutors maintained that the agreement represents the most just and practical resolution under the circumstances.

The court will ultimately decide whether to approve the settlement. If accepted, the deal could mark a controversial close to one of the most significant corporate safety failures in aviation history.