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Boeing and Justice Department ask judge to approve deal opposed by families of crash victims

Boeing and the Justice Department asked a U.S. Judge on Wednesday to approve an agreement allowing the company to avoid prosecution, despite objections by some of the relatives of 346 people who died in two 737 MAX crash in 2018 and 2019.

Boeing can avoid being branded a convicted criminal and escape from oversight by an independent monitor for a period of three years. This was part a deal reached in 2024, which included a plea agreement to a criminal charge of fraud that it had misled U.S. regulatory authorities about a critical flight control system installed on its most popular jet the 737 MAX.

Boeing claimed that the executive branch alone has the authority to decide whether or not to prosecute.

Boeing stated that an agreement to not prosecute does not need court approval because it is at the discretion of the government to do so. Boeing asked a judge not to accept objections from the families, but to grant the government’s motion to dismiss charges.

"Disputing government's calculated assessment of litigation risks, the calculation for the maximum fine or the appropriate mechanism to oversee compliance, does not demonstrate, even remotely, that the government had clear considerations against the public interest."

In a court filing, the Justice Department stated that it acted in good conscience and in accordance to the law. It agreed to dismiss the case in exchange for an agreement which "secures a significant penalty, compliance improvements and a substantial compensation fund for victims."

The families cited Judge Reed O'Connor's 2023 statement that "Boeing's crimes may be properly considered as the deadliest corporate crimes in U.S. history."

They claim that the dismissal of Boeing is not in its best interest, and that any obligations Boeing has been given are not legally enforceable.

Families said that if O'Connor did not appoint a Special Prosecutor if the government refused to proceed with the prosecution, even if the court rejected it, then the prosecution would be dropped.

Boeing and Justice Department asked O'Connor both to reject the appointment of a special prosecutor.

Boeing agreed to pay $444.5 millions into a fund for crash victims, which will be distributed evenly amongst each crash victim. This is in addition to a $243.6-million fine.

Boeing will plead guilty in July 2024 to a criminal conspiracy charge of fraud after the two fatal 737 MAX crash in Indonesia and Ethiopia.

Boeing has agreed to pay a total of $1.1 billion, which includes the fine, compensation for families, and $455 million in order to improve the company's safety, compliance and quality programs.

The Justice Department reported that the vast majority of families had settled their civil cases with Boeing, and they have collectively been "paid several hundred million dollars." (Reporting and editing by David Shepardson)

(source: Reuters)