Boeing, Justice Department reach deal to avoid trial over 737 crashes
Boeing has reached a $1.1 billion deal with the Department of Justice that will allow it to avoid prosecution for two crashes involving its 737 Max jetliners that killed a total of 346 people.
Boeing will be required to invest that money in improving the aviation giant's compliance, safety and quality program, while $445 million will be set aside to provide compensation for the families of the victims killed in the crashes, the Justice Department said.
The agreement stems from the crashes of Lion Air Flight 610 in 2018 and Ethiopian Airlines Flight 302 in 2019. The deal will allow the company to avoid criminal prosecution for allegedly misleading U.S. regulators about the 737 Max jetliner before the crashes, according to court papers filed Friday.
A statement issued on behalf of some relatives of those killed in the crashes blasted the government's deal with Boeing, saying the families felt "tremendous grief and even anger" at the agreement.
"This kind of non-prosecution deal is unprecedented and obviously wrong for the deadliest corporate crime in U.S. history. My families will object and hope to convince the court to reject it," Paul Cassell, a professor at the University of Utah's S.J. Quinney College of Law who is representing the families, said in the statement.
The Justice Department defended the agreement. "After careful consideration of the families' views, the facts and the law, the department's principles of federal prosecution and the professional and ethical obligations of prosecutors, it is the government's judgment that the agreement is a fair and just resolution that serves the public interest," the court papers state.
Boeing declined to comment.
Many relatives of the passengers who died in the crashes have spent years pushing for a public trial, the prosecution of former company officials and more severe financial punishment for Boeing.
"Nothing will diminish the victims' losses, but this resolution holds Boeing financially accountable, provides finality and compensation for the families and makes an impact for the safety of future air travelers," the Justice Department said in a statement.
Aimee Picchi is the associate managing editor for CBS MoneyWatch, where she covers business and personal finance. She previously worked at Bloomberg News and has written for national news outlets including USA Today and Consumer Reports.
The Associated Press contributed to this report.
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