The US Department of Justice is expected to allow plane maker Boeing to escape criminal prosecution for violating the terms of a 2021 settlement related to the fatal 737 Max crashes in 2018 and 2019, according to the New York Times. . reported on Friday.
The department plans to offer Boeing a deferred prosecution agreement, which requires the company to install a federal monitor to oversee safety improvements, the Times reported, citing people familiar with the situation.
The US government is expected to extend its settlement offer to the aircraft manufacturer before the end of the month, according to the report. Boeing was not immediately available for comment and a Justice Department spokesman declined to comment.
Reuters could not independently verify the report. Boeing shares were flat in afternoon trading.
In May, the Justice Department said Boeing had failed to “design, implement and enforce a compliance and ethics program” to prevent violations of U.S. fraud laws. In January 2021, Boeing agreed with the Justice Department to pay $2.5 billion to resolve a legal investigation into the company’s conduct surrounding the fatal crashes.
The settlement included money to compensate victims’ families and required Boeing to review its compliance practices.
If the Justice Department had wanted to, it could have criminally charged the company, which could have affected the plane maker’s ability to win government contracts, according to a Reuters review of prosecutors’ actions after finding the companies violated other similar agreements.
But after intense internal debate, department officials appear to have concluded that prosecuting Boeing would be too legally risky, according to the New York Times report on Friday.
Any move by the Justice Department not to prosecute Boeing will bring some relief to the beleaguered plane maker, which has been mired in crisis since the Jan. 5 crash involving a 737 Max 9 jetliner. Boeing shares have fallen further 30% this year.
Relatives of victims of the fatal 737 Max crashes asked the Justice Department on Wednesday to seek a fine against the plane maker of nearly $25 billion and move forward with criminal proceedings.
Sen. Richard Blumenthal, who chairs the Senate permanent subcommittee on investigations and held a hearing with Boeing CEO Dave Calhoun on Tuesday, said, “In my opinion, as a former prosecutor, there is almost overwhelming evidence that there should be start processing.”
