Boeing Eyes Exit from 737 MAX Crash Plea Deal

Boeing is reportedly seeking to retract its guilty plea agreement concerning the two fatal 737 MAX crashes, according to the Wall Street Journal. This development comes after a U.S. judge previously rejected the initial deal, citing concerns over a diversity and inclusion clause.

The original agreement stemmed from charges that Boeing deceived regulators before the crashes, which tragically claimed 346 lives in 2018 and 2019. Negotiations between Boeing and the Justice Department are ongoing to reach a revised agreement.

Previously, Boeing agreed to plead guilty to criminal fraud conspiracy, facing a hefty fine of $487.2 million. The planemaker also committed to investing $455 million in safety and compliance improvements over a three-year probationary period overseen by the court.

Families of the crash victims have criticized the proposed plea deal, calling it a lenient “sweetheart” agreement that fails to adequately hold Boeing accountable for the devastating loss of life. An accepted plea bargain would officially brand Boeing as a convicted felon for conspiring to defraud the U.S. Federal Aviation Administration (FAA) regarding problematic software linked to the crashes.

Earlier this year, the Department of Justice (DOJ) determined that Boeing had violated the terms of a 2021 agreement that initially shielded the company from prosecution. This determination led prosecutors to pursue criminal charges and negotiate the current plea deal.

The decision to revisit the agreement was further fueled by a January 5, 2024, incident involving a door panel blowout on an Alaska Airlines jet, which exposed ongoing safety and quality control issues at Boeing.

During the proceedings in 2023, Judge Reed O’Connor stated that “Boeing’s crime may properly be considered the deadliest corporate crime in U.S. history.”

Amidst these legal challenges, Boeing recently secured a contract to develop the U.S. Air Force’s next-generation fighter jet.