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Agreement allows Boeing ( BA ) to avoid being branded a convicted

felon

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Relatives of some of the 346 people killed in 737 MAX

crashes in

2018 and 2019 objected to deal

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Boeing ( BA ) to pay $1.1 billion in total under non-prosecution

agreement

By David Shepardson

July 2 (Reuters) - Boeing ( BA ) and the Justice

Department on Wednesday asked a U.S. judge to approve an

agreement that allows the company to avoid prosecution despite

objections from relatives of some of the 346 people killed in

two 737 MAX crashes in 2018 and 2019.

The deal enables Boeing ( BA ) to avoid being branded a convicted

felon and to escape oversight from an independent monitor for

three years that was part of a plea deal struck in 2024 to a

criminal fraud charge that it misled U.S. regulators about a

crucial flight control system on the 737 MAX, its best-selling

jet.

Boeing ( BA ) argued the executive branch solely has the power to

decide whether to bring or maintain a prosecution.

"Because it is entirely within the government's discretion

whether to pursue a criminal prosecution, an agreement

not-to-prosecute does not require court approval," Boeing ( BA ) said,

asking a judge to reject objections filed by the families and

grant the government's motion to dismiss the charge.

"Disputing the government's considered assessment of

litigation risk, the calculation of the maximum fine, or the

appropriate mechanism for compliance oversight, do not

demonstrate - even remotely - that the government was clearly

motivated by considerations contrary to the public interest."

The Justice Department said in a court filing it acted in

good faith and in accordance with the law, agreeing to dismiss

the case for an agreement "that secures a significant fine,

compliance improvements, and a substantial victim compensation

fund."

The families cited Judge Reed O'Connor's statement in 2023

that "Boeing's ( BA ) crime may properly be considered the deadliest

corporate crime in U.S. history."

They argue dismissal is not in the public interest and

obligations imposed on Boeing ( BA ) are not enforceable.

If the government declined to move forward with the

prosecution even if the court rejected the deal, O'Connor should

appoint a special prosecutor, the families said.

Boeing ( BA ) and the Justice Department both asked O'Connor to

reject appointing a special prosecutor.

Under the deal, Boeing ( BA ) agreed to pay an additional $444.5

million into a crash victims fund to be divided evenly per crash

victim, on top of a new $243.6 million fine.

Boeing ( BA ) in July 2024 agreed to plead guilty to a criminal

fraud conspiracy charge after the two fatal 737 MAX crashes in

Indonesia and Ethiopia.

Under the non-prosecution agreement, Boeing ( BA ) will pay $1.1

billion in total, including the fine, compensation to families

and more than $455 million to strengthen the company's

compliance, safety and quality programs.

The vast majority of the families have settled civil suits

with Boeing ( BA ) and collectively have been "paid several billion

dollars," the Justice Department said.