The US Department of Justice (DOJ) is deliberating on a potential deferred prosecution agreement (DPA) with Boeing, aimed at avoiding criminal charges against the aerospace giant while instituting federal oversight to monitor safety improvements, The New York Times reported.
According to sources familiar with the discussions, the terms of the proposed DPA are still in flux and subject to adjustments. The agreement would mark a departure from potential criminal prosecution, which the DOJ had considered following two fatal crashes involving Boeing’s 737 MAX aircraft in 2018 and 2019, resulting in 346 fatalities.
The Times noted that Justice officials have debated extensively and concluded that pursuing criminal charges against Boeing poses significant legal risks. Instead, they view the appointment of a federal supervisor as a more expedient method to ensure Boeing’s compliance with enhanced safety protocols and quality controls.
Last month, the DOJ informed the court that a decision on the matter would be communicated by July 7. Glenn Leon, chief of the fraud section criminal division at DOJ, clarified in an email to a civil party lawyer that no final decision has been made regarding Boeing’s legal trajectory.
Boeing, which did not respond to requests for comment from AFP, had contested the DOJ’s findings in mid-June but acknowledged the severity of safety concerns. CEO Dave Calhoun assured Congress that Boeing is actively addressing these issues and making strides towards improvement.
Previously, in January 2021, Boeing entered into an initial DPA with the DOJ, agreeing to a $2.5 billion settlement to resolve fraud charges related to the certification process of the 737 MAX aircraft. However, since early 2023, Boeing has encountered ongoing challenges in production and quality control, with notable incidents such as a door plug panel detaching from an Alaska Airlines 737 Max 9 mid-flight in January.
The DOJ has cited Boeing’s failure to uphold provisions of the initial DPA, particularly in strengthening internal controls to prevent fraud, as grounds for potential prosecution. Families of the crash victims have advocated for criminal charges against Boeing and its executives, seeking a substantial fine of nearly $25 billion.
A renewed DPA would enable the US government to address Boeing’s infractions without resorting to a trial, potentially averting severe legal repercussions that could impact Boeing’s ability to secure government contracts.
The outcome of these deliberations holds significant implications for Boeing, a cornerstone of the US aviation industry and national security infrastructure. In 2023, Boeing’s defense, space, and security segment accounted for approximately $25 billion in sales, underscoring its economic and strategic importance.
As discussions continue, stakeholders await the DOJ’s final decision, which will shape Boeing’s future legal standing and its ongoing efforts to enhance regulatory compliance and safety measures.
