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Senators urge DOJ action against Boeing over 737 MAX crash settlements

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Senators urge DOJ action against Boeing over 737 MAX crash settlements
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Boeing 737 MAX | Official Website

Two U.S. Senators have called on the Department of Justice (DOJ) to prosecute Boeing in a criminal fraud case related to the 2018 and 2019 Boeing 737 MAX crashes. They urged the DOJ to reject a tentative agreement that would allow Boeing to avoid pleading guilty.

Boeing is scheduled for trial next month over allegations it misled the Federal Aviation Administration (FAA) about its MCAS system on its best-selling aircraft. A proposed non-prosecution agreement with the DOJ could prevent this trial from proceeding. Paul Cassell, an attorney representing victims' families, has also urged against allowing Boeing to evade criminal prosecution.

In a letter seen by Reuters, Cassell stated that letting Boeing avoid a trial or guilty plea would be a miscarriage of justice and further concessions would be "utterly inappropriate." He cited District Judge Reed O’Connor's description of this case as "the deadliest corporate crime in US history."

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Cassell’s letter followed a DOJ meeting with victims' families outlining the tentative non-prosecution agreement with Boeing. The government has not yet decided whether to proceed with this agreement or take Boeing to trial. Cassell argued that the proposal allows Boeing too much control over its compliance measures.

Following Cassell’s appeal, Senators Elizabeth Warren and Richard Blumenthal also pressed the DOJ for prosecution, arguing that avoiding accountability would be a serious mistake. They wrote: “DOJ must not sign a non-prosecution agreement with Boeing that would allow the company to weasel its way out of accountability for its failed corporate culture, and for any illegal behavior that has resulted in deadly consequences.”

Last year, Boeing agreed to plead guilty to conspiracy charges and pay up to $487.2 million in fines. Cassell noted that then-CEO Dave Calhoun signed a deferred prosecution agreement in 2021 acknowledging all relevant facts of the crime.

After learning about the tentative deal last Friday, victims' families expressed their intention to object formally by Thursday. The DOJ stated it had not finalized whether it will pursue an agreement or go forward with prosecution until discussions conclude.

The DOJ explained that any agreement would require material obligations from Boeing, including maximum statutory fines and improvements in compliance measures under an independent consultant's oversight. An additional fund would provide further compensation for crash victims' families.

Boeing is reportedly expected to pay $444.5 million beyond what was paid in 2021 if an agreement proceeds. This new fund aims at equal distribution among crash victims' families.

Despite past incidents, production of the popular 737 MAX continues safely worldwide daily flights are maintained as safety improvements are implemented. Plans include increasing production rates pending FAA approval after proving consistent output levels.

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