Boeing let off in 737 MAX crashes in deal judge says won’t protect public

A Texas federal judge agreed to dismiss a criminal charge filed against Boeing after two fatal 737 MAX crashes six years ago, marking a major legal victory for the manufacturer in a yearslong fraud case. 

U.S. District Judge Reed O’Connor ruled Thursday that the Department of Justice and Boeing could move forward with a non-prosecution agreement, which would drop the criminal fraud charge while imposing new fines and compliance requirements on the company. 

Federal prosecutors charged Boeing in 2021 with criminal fraud following accusations that the manufacturer misled safety regulators about a then-new software system on the 737 MAX. An error with that system — known as the Maneuvering Characteristics Augmentation System, or MCAS — led two planes to nosedive, first in Indonesia in 2018 and then in Ethiopia in 2019, killing a total of 346 people. 

Since then, Boeing, the Justice Department and the families of the crash victims’ have been locked in litigation about how to move forward. 

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Some of the families who lost loved ones in the deadly crashes objected to the non-prosecution agreement, arguing that it does not do enough to hold Boeing accountable and that dismissing the criminal charge is not in the public’s interest. 

O’Connor said Thursday the court agrees with some of the family’s objections.

“Given Boeing’s history related to this case (and the Government’s continued failure to gain Boeing’s compliance) … this agreement fails to secure the necessary accountability to ensure the safety of the flying public,” O’Connor wrote in his ruling.

But, O’Connor continued, case law does not support the court denying the motion to drop the criminal charge just because it disagrees with the government.

“The Court’s concerns about the Government’s decision-making in this case are insufficient reason” to deny the request, O’Connor wrote.

The court ruling is the latest episode in a long-running legal saga to resolve the criminal fraud charge. Boeing and the DOJ entered into a deferred prosecution agreement in 2021, which would have dropped the criminal charge if Boeing met certain conditions for three years. But a panel flew off a Boeing 737 MAX midflight in January 2024, renewing concerns about the quality of Boeing’s planes. 

Later that year, the Justice Department determined Boeing had not met the conditions of the deferred prosecution agreement, reopening the possibility of a criminal charge.

Boeing then agreed to a plea deal with the federal prosecutors. But Judge O’Connor struck that deal down, objecting to the decision to consider diversity, equity and inclusion when choosing an independent monitor to oversee Boeing’s compliance.

This year, Boeing and the Justice Department entered into a new deal, this time a non-prosecution agreement. That deal would drop the criminal charge and require Boeing to pay another fine, put additional money into a victims’ compensation fund, and invest in quality and safety programs. 

The families of those who died in the crashes objected to the non-prosecution agreement at an emotional September hearing. Ike and Susan Riffel, a family from California who lost their two sons in the crashes, called the agreement a “travesty of justice.” 

“I know that I will never see my sons again on this earth. But my hope is that we can find truth, justice and accountability for them and 344 other souls that perished in these horrific and preventable tragedies,” the family said in a statement after the hearing.

The deal did not require an independent monitor, as previous deals had. Instead, it allowed Boeing more influence to choose who would oversee its compliance. In the court filing, the Justice Department said Boeing had made “meaningful improvements” to its compliance programs, including structural and leadership changes.

On Thursday, O’Connor said he agreed with objections from victims’ families that the new agreement “disregards the need for Boeing to be subject to independent monitoring.”

A Boeing spokesperson said Thursday the company is “committed to honoring the obligations of our agreement with the Department of Justice. We are also committed to continuing the significant efforts we have made as a company to strengthen our safety, quality and compliance programs.”

While Boeing has faced the criminal charge in Texas, it has also faced numerous civil lawsuits from the crash victims’ families in Illinois, where the company used to be headquartered. 

In those cases, Boeing has admitted responsibility for the crash and attorneys for both parties have reached settlements to determine compensation for the families of each victim.

All those cases have settled before reaching trial but, this week, the first case moved forward to jury selection and opening statements.