Boeing, DOJ Still Working on Revised Plea Deal

The US Department of Justice (DOJ) and Boeing have informed a federal court that they have not reached an agreement on a revised plea deal, after an initial proposal was rejected by US District Judge Reed O'Connor in December. The two parties continue to "work in good faith toward" a new deal, according to a joint filing submitted on Jan. 3, 2024.

Boeing had initially agreed to plead guilty to a criminal fraud conspiracy charge related to two fatal 737 MAX crashes that killed 346 people in 2018 and 2019. The company also agreed to pay a fine of up to US$487.2 million and allocate US$455 million for safety and compliance improvements over three years of court-supervised probation. However, Judge O'Connor rejected the deal, citing concerns about the inclusion of a diversity and inclusion provision related to the selection of an independent compliance monitor.

In their filing, Boeing and the DOJ acknowledged the complexity of the situation, noting that the change in leadership at the DOJ could further delay the revision process. The incoming administration of president-elect Donald Trump, who is set to be inaugurated on Jan. 20, 2025, may demand additional time for the parties to brief new officials before finalizing a revised plea agreement.

“The parties recognize that the upcoming change in department leadership, and the need to brief incoming officials, may necessitate additional time,” stated Boeing and the DOJ in their court submission. They requested an extension until Feb. 16 to provide a new update on the progress of the revised deal.

Boeing and the DOJ have worked together since 2021 to resolve the issue stemming from Boeing’s fraudulent behavior during the certification of the 737 MAX. Prosecutors found that the company had misled the Federal Aviation Administration (FAA) about the Maneuvering Characteristics Augmentation System (MCAS) flight control system, which played a role in the two fatal crashes. In response to the crashes, Boeing agreed to the terms of a plea deal that included the guilty plea and financial penalties.

However, the families of the victims opposed the plea deal, arguing that it did not adequately hold Boeing accountable for its role in the crashes. The families argued that the deal failed to specifically address Boeing's fraud as a contributing factor to the tragedies.

Boeing has faced significant scrutiny since the two 737 MAX crashes, and the company’s role in the certification process has been under intense examination. The DOJ initially filed charges against Boeing in 2021 for defrauding the FAA by failing to disclose critical aspects of the MCAS system during the jet’s certification.