The U.S. Justice Department announced on Tuesday that Boeing breached its obligations under a 2021 agreement that shielded the aerospace company from criminal prosecution related to the fatal 737 MAX crashes in 2018 and 2019, which claimed 346 lives.
In a court filing in Texas, the Justice Department stated that Boeing failed to “design, implement and enforce a compliance and ethics program to prevent and detect violations of U.S. fraud laws throughout its operations.” This finding came after a January 5 incident where a panel blew off a new Boeing 737 MAX 9 jet during an Alaska Airlines flight, highlighting ongoing safety and quality concerns at the company.
The incident occurred just two days before the expiration of the 2021 deferred prosecution agreement, which had protected Boeing from criminal charges over the previous crashes. With the breach of this agreement, Boeing now faces potential criminal prosecution, which could result in substantial financial penalties and increased regulatory scrutiny, further impacting the company’s reputation amidst its ongoing challenges.
Despite the possible legal ramifications, the Justice Department indicated it would consider the steps Boeing has taken to address and remediate the violation before deciding how to proceed. The department has directed Boeing to respond by June 13 and plans to make a decision on prosecution by July 7.
Boeing acknowledged the Justice Department’s determination, stating, “We believe that we have honored the terms of that agreement and look forward to the opportunity to respond to the Department on this issue. As we do so, we will engage with the Department with the utmost transparency, as we have throughout the entire term of the agreement, including in response to their questions following the Alaska Airlines 1282 accident.”
The potential prosecution adds to the challenges Boeing faces as it works to restore confidence in its aircraft and address safety concerns that have had global implications for the aviation industry.
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U.S. says Boeing breached 2021 737 MAX criminal prosecution deal
cgtn.com
