Boeing reaches deal to avoid criminal charges over deadly 737 Max crashes
The Justice Department on Friday said it had reached a deal with Boeing that would allow the planemaker to avoid criminal charges stemming from two 737 Max crashes that killed 346 people and upended the planemaker's business for years.
Boeing will instead invest more than $1 billion in strengthening its compliance, safety, and quality programs in exchange for the Justice Department dropping the case. The deal is not yet finalized and will be submitted to the court soon, the department said in a court filing.
Crucially, the lack of being labeled as a felon could help it continue winning lucrative defense contracts without a waiver from the Pentagon.
Boeing did not immediately respond to a request for comment. The announcement appears to have little impact on the company's stock price Friday afternoon.
Boeing originally agreed to plead guilty to conspiracy to defraud the Federal Aviation Administration and pay a $243.6 million fine, but that deal was thrown out by the judge in December. A jury trial was scheduled to begin in June.
The families of some victims have long opposed any outcome that did not result in a trial.
"This isn't justice. It's a backroom deal dressed up as a legal proceeding, and it sends a dangerous message: in America, the rich and powerful can buy their way out of accountability," the victims said via a lawyer when reports first surfaced earlier in May that a deal was in the works.
It's yet another piece of good news for the beleaguered planemaker following the 737 Max crashes, a midair door-plug blowout, and other quality control headaches that have plagued its production line in recent years. In 2025, the company won a lucrative defense contract for the F-47 fighter plane and has seen an influx of orders for its 787 Dreamliner and yet-to-be-certified 777X.
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Yahoo
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Suspect in Boulder attack said he planned to kill all in group he called ‘Zionist'
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Romanian man pleads guilty to leading 'swatting' of U.S. officials
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