Boeing Faces Potential Prosecution for Violating Safety Agreement Linked to 737 Crashes, US DOJ Warns

The US Justice Department informed Boeing that it violated the terms of the agreement made in 2021 to avoid criminal charges related to the two fatal 737 Max crashes.

Following a string of safety issues this year, such as a door plug incident on an Alaska Airlines flight in January, the Department of Justice stated that Boeing could now face criminal prosecution.

Boeing is at risk of being prosecuted by the United States for not fully meeting the terms and obligations of the deferred prosecution agreement, as stated by the Justice Department in a letter to US District Judge Reed O’Connor in Fort Worth, Texas.

The Biden administration mentioned in their letter that they have not yet decided on their course of action regarding Boeing's breach of the agreement. Boeing will have until June 13 to respond to the situation and outline the steps they have taken to address it. The court will be informed of the decision on how to proceed with the case by July 7.

The Justice Department is now investigating Boeing again following the door plug incident. This comes after a previous fraud investigation concerning the 737 Max aircraft was resolved through a deal.

In January 2021, Boeing paid $2.5 billion in penalties and committed to enhancing safety and compliance measures under a deferred prosecution agreement. However, families of the victims from the Lion Air and Ethiopian Airlines crashes in 2018 and 2019 criticized the agreement, feeling it did not provide them with the justice they sought for the loss of their loved ones.

Families of victims and their lawyers recently met with the Justice Department to discuss ending the agreement due to safety issues at Boeing. Following the meeting in April 2024, attorney Paul Cassell criticized the deferred prosecution agreement, stating it was brokered without input from the families.

Cassell expressed his disappointment, stating that the focus seems to be solely on upholding the Deferred Prosecution Agreement made with Boeing, excluding the input of the affected families. He emphasized the determination to challenge the DPA and ensure that Boeing faces true accountability.

As of Tuesday, Cassell was unavailable for further comments. The Justice Department informed the families about Boeing's violation of the agreement and will continue to engage with them and other airline customers to discuss the next steps. A meeting with the families is scheduled for May 31, as part of the Department of Justice's plan.

Boeing safety issues following its agreement:

In a letter sent to the federal judge in charge of the previous agreement on Thursday, the Justice Department stated that Boeing had been informed of the government's determination that the company had failed to fulfill its obligations. This failure occurred in various aspects of the 2021 deal, as Boeing did not properly establish, carry out, and uphold a compliance and ethics program. This program was supposed to prevent and identify violations of U.S. fraud laws across all of Boeing's operations.

Boeing has had ongoing issues with quality and safety despite promising to improve. Just months after reaching an agreement, on September 20, 2021, the company revealed that it had discovered empty tequila bottles inside one of the two 747 jets being renovated for the new Air Force One.

Boeing faced delays in delivering the 737 Max in April 2023 due to a supplier using a "non-standard manufacturing process."

In February 2024, a National Transportation Safety Board investigation revealed that the plane left a Boeing factory without the necessary bolts to secure the door plug. The Federal Aviation Administration criticized Boeing's safety culture in a report, giving the company 90 days to address the issues. Subsequent FAA audits identified multiple production problems at Boeing.

In March, the FAA found additional safety concerns with the engines of the 737 Max and 787 Dreamliner.

Last month, the FAA started looking into a complaint from a whistleblower about the company possibly cutting corners in the production of its 777 and 787 Dreamliner jets. The whistleblower warned that these shortcuts could pose serious risks as the planes get older. The company denied the allegations.

This story has been updated with additional developments and context.

CNN’s Chris Isidore and Greg Wallace contributed to this report

Editor's P/S:

The recent news regarding Boeing's violation of the 2021 agreement with the Justice Department is deeply concerning. The company's ongoing safety issues, despite its commitment to improvements, raise serious doubts about its ability to prioritize the safety of its passengers and employees. The Justice Department's investigation into the company's failures to establish and maintain an effective compliance program highlights the systemic problems within Boeing.

It is disheartening to learn that families of the victims of the Lion Air and Ethiopian Airlines crashes have not received the justice they sought. The focus on upholding the deferred prosecution agreement without considering the input of the affected families is a grave injustice. The Justice Department's ongoing engagement with the families is a positive step, but it remains to be seen if true accountability will be achieved. Boeing's repeated safety lapses demonstrate the need for stronger oversight and stricter enforcement of aviation regulations.