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Boeing is facing allegations of violating a 2021 agreement that shielded it from criminal prosecution following two tragic 737 Max crashes that claimed 346 lives. The Department of Justice (DOJ) informed a federal judge about this alleged violation in a court filing on Tuesday.
According to the DOJ, Boeing failed to establish and enforce a compliance and ethics program to prevent and detect violations of U.S. fraud laws across its operations. While the government has not yet decided on pursuing prosecution, attorneys representing the crash victims' families are hopeful for further action in the case.
Paul Cassell, an attorney for the victims' families and a law professor at the University of Utah College of Law, stated, "This is a positive first step, and for the families, a long time coming. But we need to see further action from DOJ to hold Boeing accountable, and plan to use our meeting on May 31 to explain in more detail what we believe would be a satisfactory remedy to Boeing’s ongoing criminal conduct."
Boeing has acknowledged receipt of the DOJ's decision and intends to respond. The company said, "We believe that we have honored the terms of that agreement and look forward to the opportunity to respond to the Department on this issue. As we do so, we will engage with the Department with the utmost transparency, as we have throughout the entire term of the agreement, including in response to their questions following the Alaska Airlines 1282 accident."
Government officials are scheduled to meet with crash victims' families on May 31 and have directed Boeing to respond to the filing by June 13. The DOJ will inform the court by July 7 regarding its plans, which could include criminal charges against Boeing.
Boeing has faced increased regulatory and legislative scrutiny this year following the grounding of its 737 Max jets. In January, an Alaska Airlines 737 Max experienced an incident where a door plug was lost during a flight. Although there were no serious injuries or fatalities, the Federal Aviation Administration (FAA) promptly grounded the 737 Max fleet with similar door plugs, and regulators initiated new investigations into Boeing's production practices.
Passengers on the Alaska Airlines flight later received letters from the FBI informing them that they may be victims of a crime.