Failure to Prosecute: Boeing Case Awaiting Judge’s Response to the Plea Deal

More than five years after the two crashes involving Boeing planes, the fate of the case is in the hands of federal Judge Reed O’Connor. A hearing regarding review of the plea deal proposed by the Department of Justice was held on October 11, 2024 [1].  

The case at hand revolves around the Boeing 737 Max crashes of 2018 and 2019. Lion Air flight 610 was the first fatal incident that killed 189 people [2]. Subsequently, in March of 2019, Ethiopian Airlines flight 302 crashed shortly after take off from Addis Ababa Airport, and killed 157 people [3]. The combined casualty rate from both flights was 346 victims. The crashes were found to be caused by a flawed flight control system among other factors. The Maneuvering Characteristics Augmentation System (MCAS) that impacted the flight control system of the Boeing 737 Max planes was attempted to be activated by the pilots in either flight, but there were complications. Further, the pilots themselves did not receive adequate training prior to either flight, and were unable to proceed with the right course of action when certain flight measures, such as the MCAS, failed to operate [4].  

Following the crashes, the United States Department of Justice launched a series of investigations on Boeing’s aircrafts in regard to safety procedures. In 2021, Boeing was charged with conspiracy to defraud the Federal Aviation Administration Aircraft Evaluation Group. Within court documents, Boeing admitted that the two crashes were tied to lies regarding the MCAS system and its impact on flight control systems within the aircraft [5]. Subsequently, Boeing entered into a Deferred Prosecution Agreement (DPA) and was required to pay over $2.5 billion. The breakdown of the payment consisted of a criminal monetary penalty of $243.6 million, compensation payments to Boeing’s 737 Max airline customers of $1.77 billion, and a $500 million fund to compensate the families of the 346 victims [6]. In addition, the DPA required that Boeing instate a method for distributing the claim effectively and to all the parties involved. Failure to do so would result in additional persecution faced from the United States Department of Justice [7]. As a result, Boeing avoided criminal prosecution by entering into the DPA. 

Upon initiation of the DPA, the families of the victims from the crashes involved themselves in the case. The arraignment was held on January 26, 2023, and where Boeing entered a plea of not guilty [8]. In July 2024, Boeing’s plea deal after the DPA was in effect for three years. The key difference between the DPA of 2021 and the plea deal finalized in 2024 is the company’s legal accountability and consequences for the incidents. Within the DPA, Boeing admitted to misleading the FAA AEG, but did not plead guilty to the criminal conspiracy and fraud charges. There was no criminal conviction and prosecution was deferred for three years based on compliance of the measures outlined in the agreement. In the new plea deal from July, there is a formal admission of guilt. However, the plea deal makes it easier for the company, which will have a new CEO later this year, to move forward as it seeks approval for its planned acquisition of Spirit AeroSystems [9]. The other provisions of the plea agreement include an additional $487 million payment on top of previous settlements and a $455 million investment in further compliance and safety improvement programs. Boeing is also required to appoint an independent third-party monitor to oversee its adherence to safety protocols. Boeing's board of directors must meet with the families of the crash victims [10]. Without any true criminal consequences, the families of the victims feel that this is merely a slap on the wrist for a multimillion dollar company. They feel the plea agreement allows them to recover easily from a fatality through probation. 

Another controversy of the case is that Boeing’s violations of the DPA were ignored by the Department of Justice. In January 2024, a panel blew off a Boeing jetliner during an Alaska Airlines flight, forcing it to land [11]. This incident occurred two days before the DPA shielding Boeing from prosecution expired. In May of 2024, the Department of Justice determined that Boeing breached its obligations under the DPA by failing to design, implement, and enforce a compliance and ethics program to prevent and detect violations of U.S. fraud laws  [12].The new plea deal does not give Boeing immunity from other incidents, such as the January 2024 accident. The Department of Justice proceeded with a plea when the accident should have been considered when evaluating Boeing’s lack of safety measures. 

Upon announcement of the plea deal awaiting judge approval, victims of families of the fatal Boeing crashes feel that their voices are not being heard in the criminal justice system. They believe that Boeing should be held accountable for their failure to properly train pilots and equip aircrafts with functioning flight systems. There was a failure to prosecute Boeing. Deferred agreements created a long and drawn out proceeding to defer from necessary action. The Boeing case calls into question why a major corporation should be treated any differently compared to individuals in the criminal justice system, as Boeing was allowed to pay off its crimes. 

After the plea deal hearing last week, the families gathered outside and held up posters with photos of the victims, some wearing the images of their lost loved ones around their necks, waiting for justice to be restored for the people they lost to a corporation.

Sources:

1. United States v. The Boeing Company, No. 4:21-cr-00005-O (N.D. Tex. Jan. 7, 2021)
2. Boeing 737 Max Crashes: Guilty Plea, Indonesia and Ethiopia, The Guardian (July 8, 2024), https://www.theguardian.com/business/article/2024/jul/08/boeing-737-max-crashes-guilty-plea-indonesia-ethiopia.
3. Boeing Faces Justice Department ‘Sweetheart’ Deal Over Ethiopian, Lion Air Crashes, The Guardian (June 30, 2024), https://www.theguardian.com/business/article/2024/jun/30/boeing-justice-department-sweetheart-deal-ethiopian-lion-air.
4. Ethiopian Officials Say Faulty Boeing Software Played Role in Deadly 737 Max Crash, NPR (March 9, 2020), https://www.npr.org/2020/03/09/813740173/ethiopian-officials-say-faulty-boeing-software-played-role-in-deadly-737-max-cra.
5. Boeing Charged in 737 Max Fraud Conspiracy and Agrees to Pay Over $2.5 Billion, U.S. Dep't of Justice (Jan. 7, 2021), https://www.justice.gov/opa/pr/boeing-charged-737-max-fraud-conspiracy-and-agrees-pay-over-25-billion.
6. Id.
7. Id. 
8. Id.
9. Id.
10. U.S. Finalizes Details of Boeing 737 Max Plea Deal, Reuters (July 24, 2024), https://www.reuters.com/legal/us-finalizes-details-boeing-737-max-plea-deal-2024-07-24/.
11. Id. 
12. Id.
13. U.S. Finalizes Boeing 737 Max Plea Deal, Bloomberg Law (July 24, 2024), https://www.bloomberglaw.com/bloomberglawnews/white-collar-and-criminal-law/X59S4ABK000000?bna_news_filter=white-collar-and-criminal-law#jcite.