News Report: Prosecutors Push for Criminal Charges Against Boeing for Safety Issues on 737 Max
According to a source familiar with the situation, prosecutors are urging the US Justice Department to file criminal charges against Boeing for safety issues surrounding its 737 Max. However, top Justice Department officials have not made a final decision on the matter, as reported by CNN.
This latest development is another hit to Boeing’s once-stellar reputation for quality and safety in its commercial jets. This comes on the heels of two fatal crashes of the 737 Max in 2018 and 2019, as well as ongoing questions about the safety and quality of Boeing’s jets. In a recent incident, a door plug on a 737 Max flown by Alaska Air blew out, causing a gaping hole in the side of the jet, further damaging Boeing’s image.
Boeing had previously reached an agreement with the Justice Department in January 2021 to settle charges related to allegations that the company defrauded the Federal Aviation Administration during the certification process of the 737 Max. The plane, which started service in 2017, experienced two fatal crashes in October 2018 and March 2019 due to a design flaw admitted by Boeing, leading to a 20-month grounding of the jet.
In the 2021 settlement, Boeing avoided criminal liability despite the Justice Department’s acknowledgment of “misleading statements, half-truths, and omissions” made by Boeing employees regarding the design flaw.
Reuters initially reported the recommendation for criminal charges, to which Boeing has not commented on. The company has stated that it will challenge claims that it violated the 2021 settlement.
Family members of crash victims and members of Congress criticized the 2021 deferred prosecution agreement, calling it the “deadliest corporate crime in U.S. history.” They have urged the Justice Department to impose the maximum possible $24.9 billion fine on Boeing.
Boeing’s financial woes could deepen with potential criminal charges, as the company has already posted core operating losses of $31.9 billion since the 2019 737 Max grounding. The company is also at risk of losing its investment grade credit rating for the first time in its history, which could significantly impact its cost of borrowing money.
If found guilty of a crime, Boeing could face being barred from doing business with the federal government, though this outcome is unlikely due to national security implications. A new settlement with additional oversight of the company’s operations is a probable resolution should criminal charges be brought against Boeing.
This story will continue to be updated with further reporting and context.
