Boeing Faces Criminal Fraud Trial in June Over 737 MAX Misrepresentations
Boeing is set to face a criminal fraud trial beginning June 23, after a US judge abruptly scheduled the proceedings in the Department of Justice’s (DOJ) case against the aerospace giant, as per Al Jazeera.
The case stems from Boeing’s alleged misrepresentations to US regulators concerning a key system on the 737 MAX aircraft, which were involved in two fatal crashes.
The trial date was set Tuesday by US District Judge Reed O’Connor, who had previously rejected a plea deal agreed upon in July 2023. That deal involved Boeing pleading guilty to a criminal fraud conspiracy charge and paying a fine of up to $487.2 million. O’Connor faulted the diversity and inclusion provision within the original agreement. He had given Boeing and the DOJ until April 11 to reach a new agreement.
According to a report by The Wall Street Journal, Boeing is now seeking to withdraw from the existing plea deal altogether. The judge did not offer any specific reasons for setting the trial date or rescinding the prior April 11 deadline for a revised deal.
In 2023, O’Connor stated that “Boeing’s crime may properly be considered the deadliest corporate crime in US history,” highlighting the severity of the allegations.
Boeing issued a statement on Tuesday:
“The company and the Justice Department continue to be engaged in good faith discussions regarding an appropriate resolution of this matter.” The Justice Department did not immediately comment on the newly scheduled trial date.
The rejected plea deal involved Boeing spending $455 million to improve safety and compliance practices over a three-year court-supervised probation period, as well as oversight from an independent monitor for three years.
Relatives of the 346 victims of the two 737 MAX crashes in 2018 and 2019 have vocally criticized the proposed plea agreement, labeling it a “sweetheart” deal that fails to adequately hold Boeing accountable for the deaths of their loved ones.
Acceptance of a plea deal would brand Boeing a convicted felon for conspiring to defraud the Federal Aviation Administration (FAA) regarding problematic software affecting the flight control systems of the planes that crashed during the MAX’s certification.
In May, the DOJ determined that Boeing had violated a 2021 agreement that had shielded it from prosecution over the crashes. Following this determination, prosecutors moved to criminally charge Boeing and negotiate the now-disputed plea deal.
The decision to charge Boeing came after a January 5, 2024, in-flight blowout of a door panel on an Alaska Airlines jet, which exposed ongoing safety and quality issues within Boeing’s manufacturing processes.
Officials within the Donald Trump administration have previously stated that regulators must take a firm stance with Boeing following a series of safety missteps. The upcoming trial marks a significant turn in the long-running legal saga surrounding the 737 MAX crashes and Boeing’s alleged misconduct.
