DOJ Agrees to End Prosecution Against Boeing Over 737 MAX Crashes

Boeing agreed to pay more than $1.1 billion in fines, safety improvements, and compensation for families of the 346 people killed in the crashes.

The Boeing logo on the side of a Boeing 737 MAX at the Farnborough International Airshow, in Farnborough, England, on July 20, 2022. Peter Cziborra/Reuters

The U.S. Department of Justice (DOJ) said it has reached a deal in principle with Boeing and will drop its criminal prosecution stemming from two 737 MAX crashes that killed 346 people.

As part of the deal outlined in a court filing on Friday, Boeing will spend $1.1 billion on fines, safety improvements, and compensation for families of the crash victims.

Specifically, that includes a $487.2 million criminal fine, $444.5 million toward a fund to be evenly distributed among the victims’ families, and $455 million dedicated to boosting Boeing’s compliance, safety, and quality programs.

Boeing will also admit to “conspiracy to obstruct and impede” the Federal Aviation Administration (FAA), instead of standing trial on a felony charge of conspiracy to defraud federal regulators.

The deal does leave open the possibility of re-filing the criminal charge if the government finds Boeing to be noncompliant with the new terms. The DOJ also clarified that the deal “will not provide protection against prosecution for any other misconduct.”

The agreement needs the approval of U.S. District Judge Reed O'Connor of Fort Worth, Texas, who is presiding over the case.

“On top of the financial investments, Boeing must continue to improve the effectiveness of its anti-fraud compliance and ethics program and retain an independent compliance consultant,” a spokesperson for the DOJ said, quoting directly from Friday’s agreement.

Boeing did not immediately respond to a request for comment.

The federal prosecution against Boeing stemmed from two 737 MAX crashes that occurred within five months of each other: one off the coast of Indonesia in October 2018 and another in Ethiopia in May 2019. All passengers and crew on board both flights were killed.

Investigators linked the crashes to a flight control system called the Maneuvering Characteristics Augmentation System, or MCAS, which was designed to automatically push the plane’s nose down if a sensor detected a stall. In both tragedies, erroneous sensor readings activated MCAS, sending the aircraft into a dive that the pilots were unable to reverse.

According to a 2019 report by the Joint Authorities Technical Review, a panel of experts from the FAA and other international aviation regulators, Boeing had removed information relating to MCAS functionality from a draft of the 737 MAX flight manual. As a result, FAA officials responsible for certifying aircraft designs were “not fully aware of the MCAS function” and were “not in a position to adequately assess” the level of pilot training required to meet safety needs.

Federal prosecutors later stated that due to this omission, aircraft manuals and pilot training materials used by U.S.-based airlines “lacked information about MCAS.”

In 2021, Boeing reached a $2.5 billion settlement with the DOJ that allowed it to avoid prosecution. That agreement included a $243.6 million fine and commitments from Boeing to improve compliance and safety programs.

In May 2024, prosecutors alleged that Boeing had violated the terms of that agreement by failing to implement promised reforms designed to prevent violations of federal anti-fraud laws. In response, Boeing agreed last July to a plea deal, which included another $243.6 million fine, $455 million for safety and compliance improvements over the next three years, and oversight by a government-appointed independent monitor.

Judge O'Connor rejected that plea deal in December, siding with victims’ families demanding a trial.

The judge took issue with the selection process for an independent monitor, saying that the diversity, equity, and inclusion (DEI) policies in the government and at Boeing could allow race or other diversity factors to influence the selection. He also criticized the agreement for excluding the court from any role in the monitor’s appointment.

“It is fair to say the government’s attempt to ensure compliance has failed. At this point, the public interest requires the court to step in,” O'Connor said in rejecting the deal. “Marginalizing the court in the selection and monitoring of the independent monitor as the plea agreement does undermine public confidence in Boeing’s probation.”

A trial in the case is currently scheduled to begin on June 23.