Texas Hearing Could Determine Whether or Not Boeing Faces Criminal Prosecution

The families of passengers killed in two major Boeing 737 MAX crashes may have just taken their final swing at the company’s criminal prosecution case. A federal court in Fort Worth heard arguments on September 3 over whether to dismiss a felony fraud charge tied to the deaths of 346 people.

The charge, conspiracy to defraud the US government, stems from Boeing’s concealment of a flight-control system later implicated in both accidents. Prosecutors originally settled with Boeing in 2021 for $2.5 billion, shielding the company from prosecution as long as it brought its tech into compliance. That protection fell through last year when prosecutors said Boeing had violated the terms, reopening the case.

Boeing briefly agreed to plead guilty in December 2024. Judge Reed O’Connor rejected the plea deal, citing difficulty in the selection of an independent monitor. This move left prosecutors scrambling, and six months of renegotiation later, the Justice Department and Boeing landed on a new agreement. This time, prosecutors asked to drop the charge altogether in exchange for $1.1 billion more in fines, victim compensation, and internal safety programs.

Families of victims say the deal doesn’t cut it. Nearly 100 relatives filed objections, urging the judge to appoint a special prosecutor and push the case to trial. Some traveled from as far as France, Ireland, and Canada to testify in person, describing their losses and accusing Boeing of putting defective airplanes in the sky.

The Justice Department defended its decision by presenting the risks of a trial, reminding the families that the negotiated settlement ensures immediate accountability while avoiding years of legal uncertainty. Prosecutors also reserved the option to refile charges if Boeing fails to follow through over the next two years.

The crashes referenced were traced to a software system on the 737 Max that repeatedly forced the nose of the plane down. Regulators concluded Boeing had withheld key details from the FAA, which approved minimal pilot training and cleared the jet for service. After the second crash, in Ethiopia, the global 737 Max fleet was grounded for 20 months.

FMI: www.boeing.com