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Boeing faces criminal fraud trial over fatal 737 MAX crashes

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Boeing faces criminal fraud trial over fatal 737 MAX crashes
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Boeing 737 MAX | Wikipedia

A trial date has been set for Boeing's criminal fraud case related to the two fatal 737 MAX crashes. A US judge will hear the case on June 23, where further proceedings are expected to be determined. This legal action arises from Boeing's handling of a key system on the 737 MAX that led to two crashes and numerous fatalities.

On June 23, a US judge will address the criminal fraud charges against Boeing, as filed by the United States Department of Justice. According to Reuters, the judge "abruptly set a June 23 trial date" for this case, which stems from two deadly 737 MAX incidents.

Last year, Boeing and the Justice Department requested that the US District Court for the Northern District of Texas accept a plea agreement after discovering that Boeing had violated its deferred prosecution agreement (DPA). The aircraft manufacturer was on corporate probation for three years following the crashes and was accused of breaching its DPA terms. The Justice Department stated that Boeing failed to design, implement, and enforce an effective compliance and ethics program to prevent and detect violations of US fraud laws.

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Boeing chose to plead guilty to conspiring to defraud the US government, specifically targeting the Federal Aviation Administration (FAA) Aircraft Evaluation Group (FAA AEG). As part of this decision, Boeing agreed to pay an additional fine of $243.6 million and invest $455 million in improving its compliance, quality, and safety programs.

However, in December, Judge Reed O'Connor in Fort Worth rejected Boeing's plea agreement due to a diversity and inclusion provision within it. O'Connor granted Boeing and DOJ until April 11 to negotiate a new plea deal.

As reported by Reuters, Boeing indicated that it is engaged in "good faith discussions regarding an appropriate resolution" with DOJ. This follows news from The Wall Street Journal suggesting that Boeing might withdraw last year's guilty plea agreement in hopes of receiving lighter treatment under a new administration. However, sources claim that Boeing does not intend to abandon its commitment entirely.

The 737 MAX remains popular among airlines globally but has faced scrutiny due to past issues. Initially designed as a competitor to Airbus' A320neo family, it suffered from software flaws leading to crashes involving Lion Air and Ethiopian Airlines planes. These incidents resulted in a nearly two-year global grounding.

In January 2024, another setback occurred when an Alaska Airlines midair blowout incident exposed manufacturing flaws at Boeing. Consequently, the FAA limited monthly MAX production at 38 units.

Boeing has undergone several management changes since these events, including appointing a new CEO. The outcome of this criminal fraud case after June's hearing remains uncertain.

Families affected by these tragedies seek greater accountability from Boeing. They criticized previous agreements as inadequate for holding the company responsible. Erin Applebaum—a lawyer representing families impacted by the Ethiopian Airlines crash—urged DOJ "to stand on the right side of history," rejecting further negotiations and pursuing full prosecution against Boeing.

The upcoming trial is anticipated with keen interest.

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