US Department of Justice Settles With Planemaker Over Two Fatal Crashes

The US Department of Justice has reached a non-prosecution agreement with Boeing that keeps felony charges off the planemaker’s name. The deal is tied to the two fatal 737 MAX crashes in 2018 and 2019 that killed 346 people, drawing immediate criticism from many of the victims' families.

The agreement includes a new $243.6 million criminal fine and an additional $444.5 million for a crash-victims fund. These payments come on top of earlier settlements, bringing Boeing’s total financial commitment to over $1.1 billion. Boeing will also invest $455 million in strengthening its compliance, safety, and quality programs.

"Boeing must continue to improve the effectiveness of its anti-fraud compliance and ethics program and retain an independent compliance consultant," stated the Justice Department. "We are confident that this resolution is the most just outcome with practical benefits."

In a meeting with victims’ families, prosecutors confirmed Boeing will no longer plead guilty to the fraud charge related to misleading regulators about the Maneuvering Characteristics Augmentation System (MCAS): a flight control system linked to both crashes. Boeing had previously agreed to plead guilty last year, but was turned down by a federal judge in December 2024.

The Justice Department backed its decision by citing the legal and logistical challenges of proceeding to trial, stating the agreement offers immediate accountability and avoids the risks of uncertain litigation. An attorney for many of the victims’ relatives, however, called the deal “unprecedented and obviously wrong.”

The deal also marks a reversal from earlier Justice Department efforts to prosecute Boeing after determining the company had violated a 2021 deferred prosecution agreement. That original agreement, made during the Trump administration, had protected Boeing from charges unless it committed further violations.

Boeing has faced increased scrutiny since a January 2024 incident involving a door plug detaching from a 737 MAX 9 during flight. Following that event, the FAA capped Boeing’s MAX production and heightened oversight. The DOJ used the renewed investigation as a basis to reopen the earlier case and negotiate new terms.

FMI: www.boeing.com