The U. S. Department of Justice (DOJ) is alleging that Boeing violated a critical provision of a 2021 settlement agreement, potentially opening the door to criminal charges stemming from the two fatal crashes of 737 MAX airplanes in 2018 and 2019.
The settlement, reached in January 2021, allowed Boeing to avoid criminal prosecution in exchange for a $2. 5 billion fine and a commitment to improve its safety protocols. However, in a court filing on Tuesday, the DOJ argued that Boeing failed to establish and implement an adequate compliance program, as mandated by the agreement.
The specific deficiencies in Boeing's program remain under court seal, but the DOJ contends they are serious enough to constitute a breach of the settlement. Boeing, on the other hand, maintains it has upheld its end of the bargain.
"We believe that we have honored the terms of the agreement, and look forward to the opportunity to respond to the Department on this issue, " said Boeing spokeswoman Jessica Kowal in a statement.
The dispute hinges on the effectiveness of Boeing's efforts to reform its corporate culture following the crashes, which together claimed 346 lives. Investigators determined that a faulty flight control system, the Maneuvering Characteristics Augmentation System (MCAS), was a key factor in both accidents. Boeing has since redesigned the MCAS and the 737 MAX was eventually cleared to fly again in late 2020.
The DOJ's accusation against Boeing comes at a time when the company is still grappling with the aftermath of the crashes. Boeing faces a multitude of lawsuits from the families of the victims, and the Federal Aviation Administration (FAA) is continuing its scrutiny of the company's safety practices.
The outcome of the court filing could have significant ramifications for Boeing. If the DOJ prevails in its argument that Boeing breached the settlement, the company could face criminal charges that could result in additional fines and potentially even jail time for some executives. A criminal conviction could also further erode public trust in Boeing and damage its reputation.
Boeing maintains that it is a fundamentally changed company since the crashes, and argues that criminal charges would not serve the public interest. The company maintains its commitment to safety and points to the successful return of the 737 MAX to service as evidence of its progress.
A federal judge in Fort Worth, Texas, will now decide whether to accept the DOJ's arguments and vacate the deferred prosecution agreement. If that happens, Boeing could be back on the hook for criminal charges related to the 737 MAX crashes.