US Prosecutors Push For Criminal Charges Against Boeing Over Settlement Violations: Report

U.S. prosecutors are urging senior Justice Department officials to file criminal charges against Boeing, alleging the company violated a prior settlement agreement related to two fatal crashes, Reuters reported on Sunday.

The Justice Department faces a deadline of July 7 to decide whether to prosecute Boeing.

It comes after a finding in May that Boeing breached a 2021 settlement agreement that had protected the company from a criminal charge of conspiracy to commit fraud. It was linked to the tragic crashes of the 737 MAX jets that killed nearly 350 people in 2018 and 2019.

Under the 2021 agreement, the Justice Department agreed to refrain from prosecuting Boeing provided the company reformed its compliance practices and submitted regular reports. Boeing had also committed to paying $2.5 billion to settle the investigation.

However, prosecutors now say that Boeing has not followed the terms of the deferred prosecution agreement.

Boeing has previously said it has "honored the terms" of the 2021 settlement.

Both parties are currently engaged in discussions to potentially resolve the ongoing investigation.

Should criminal charges be brought against Boeing, it would exacerbate the company's ongoing crisis, which has been under intense scrutiny from various U.S. authorities.

The exact nature of the possible criminal charges remains unclear, but it is reported that they could extend beyond the original fraud conspiracy charge from 2021.

The Justice Department might also consider extending the settlement by another year or imposing stricter terms. Potential resolutions could involve financial penalties, the installation of a third-party compliance monitor, or even a requirement for Boeing to plead guilty.

Such a plea could have severe implications for Boeing's business, particularly its significant revenue from U.S. government contracts, including with the Defense Department, which could be jeopardized by a felony conviction.

Relatives of the victims of the 737 MAX crashes have long criticized the 2021 settlement, advocating for a more stringent response from the Justice Department.

Recently, families have urged prosecutors to impose a substantial fine of more than $24 billion on Boeing and pursue criminal charges.

"Because Boeing's crime is the deadliest corporate crime in U.S. history, a maximum fine of more than $24 billion is legally justified and clearly appropriate, although it might be partially suspended if funds that would otherwise be paid are devoted to appropriate quality control and safety measures," attorney Paul Cassell wrote on behalf of some victims' families.

At a Senate hearing in June, Boeing's Chief Executive Dave Calhoun publicly acknowledged the company's safety failures and extended apologies to the families affected by the tragedies.