By Sumit Vishe
U.S. prosecutors are engaged in crucial discussions with Boeing and the families of victims from fatal crashes as a pivotal July 7 deadline approaches for the Justice Department to decide on potential criminal charges against the aircraft manufacturer. This information comes from sources familiar with the matter and correspondence reviewed by Reuters.
According to one source, Justice Department officials convened with Boeing’s legal team on Thursday to address findings that Boeing violated terms of a 2021 deferred prosecution agreement (DPA). This agreement had shielded Boeing from criminal charges related to two tragic 737 MAX crashes in 2018 and 2019, which resulted in the deaths of 346 people.
Simultaneously, federal prosecutors are scheduled to meet with family members of the crash victims on Sunday to provide updates on the ongoing investigation progress, according to a second source. The Justice Department is reportedly under pressure to finalize its decision within a tight timeline, as indicated in an email seen by Reuters.
During Thursday’s meeting, lawyers from Kirkland & Ellis, representing Boeing, argued before officials from the Deputy Attorney General’s office that prosecuting Boeing would be unjustified, and there is no basis to nullify the 2021 agreement, according to sources familiar with the discussions.
It is customary for companies under DOJ scrutiny to make appeals during negotiations aimed at resolving government investigations. The email mentioned that officials seek input from family members as they deliberate on how to proceed. Representatives from the Justice Department’s criminal fraud division and the U.S. attorney’s office in Dallas are expected to attend the upcoming meeting.
Both the Department of Justice and Boeing declined to comment on the ongoing discussions.
Boeing has consistently asserted that it upheld the terms of the settlement and formally contested the DOJ’s conclusion that it breached the agreement. Earlier reports from sources indicated that U.S. prosecutors have recommended pursuing criminal charges against Boeing for violating the terms of the 2021 settlement.
Negotiations between Boeing and the Justice Department are ongoing, with discussions centered on potential resolutions to the investigation. However, there is no certainty at this stage that authorities will proceed with criminal charges, as noted in previous reports.
The current deliberations follow a January 5 incident involving a mid-flight panel failure on a Boeing aircraft, occurring just days before the expiration of the company’s DPA. This event highlighted ongoing concerns regarding Boeing’s safety protocols and operational standards.
Boeing had been on track to avoid prosecution for conspiracy to defraud the U.S. Federal Aviation Administration (FAA) in connection with the 2018-2019 crashes. As part of the earlier settlement, prosecutors agreed to drop criminal charges contingent upon Boeing’s comprehensive overhaul of compliance practices and ongoing reporting obligations. Additionally, Boeing agreed to a $2.5 billion settlement to resolve the investigation.
In May, the Justice Department concluded that Boeing had failed to adequately implement and maintain a compliance and ethics program to prevent violations of U.S. fraud laws across its operations, as stated in a court filing in Texas.
