Boeing Judge Urged to Accept US Deal in 737 Max Crash Case (1)

The US Justice Department urged a judge in Texas to accept a proposed settlement agreement reached with Boeing Co. that would allow the planemaker to avoid a criminal charge in a longstanding case over two fatal crashes of its 737 Max jets.

In a court filing Wednesday, federal prosecutors defended the deal, arguing that it was made in good faith and will secure meaningful commitments from Boeing to make improvements.

Family members of some people killed in the crashes have expressed opposition to the agreement, which they say fails to hold Boeing accountable for the deaths of 346 people. In a separate filing last month, those family members asked the court to reject the deal and appoint a special prosecutor to take over the case.

“In the end, the government has made the considered and constitutionally vested decision not to prosecute,” Justice Department lawyers said in Wednesday’s filing. “There is no legal basis to override that decision or to appoint a special prosecutor, nor would either step yield anything but constitutional conflict.”

The government lawyers noted that some family members support the agreement and that relatives of the victims “continue to express a wide range of views, reflecting the complexity and sensitivities of the case.”

Boeing weighed in Wednesday to support the government’s arguments.

“Appointment of a special prosecutor, whether now or later, would violate Boeing’s rights and be inconsistent with the Constitution and law,” the company’s lawyers wrote in a filing.

The Justice Department in May asked US District Judge Reed O’Connor in Fort Worth to dismiss the case, after Boeing agreed to pay more than $1.1 billion in fees and fines, and to take steps to strengthen internal quality and safety measures. In return, the company will avoid criminal prosecution.

If O’Connor agrees to a dismissal, it would end the long-running criminal case against Boeing over the crashes in 2018 and 2019. But it would also mark a notable reversal. Just last year, Boeing agreed to plead guilty to the pending criminal conspiracy charge under a deal that was ultimately rejected by O’Connor.

Under the new settlement, Boeing will admit to the underlying accusation of “conspiracy to obstruct and impede the lawful operation of the Federal Aviation Administration Aircraft Evaluation Group,” but that admission does not constitute a guilty plea.

The government said it could refile criminal charges against the company if Boeing is accused of violating the terms of the two-year agreement. Some family members dispute that claim, saying the statute of limitations has already expired.

Read More: US Seeks to Dismiss Boeing Criminal Charge Over 737 Crashes

Boeing’s pledged payments under the deal include:

• $487.2 million, half of which the company already paid to the government during an earlier phase of the case
• $444.5 million for a new “Crash-Victims Beneficiaries Fund” that will be divided evenly by crash victim
• $455 million in investments to bolster its compliance, safety and quality programs

Boeing would be required to retain a so-called independent consultant to oversee its efforts to improve the effectiveness of its anti-fraud compliance and ethics program. The consultant will be expected to make recommendations for improvements and report their findings directly to the government.

The case is US v. Boeing, 21-cr-005, US District Court, Northern District of Texas (Fort Worth).

(Updates with Boeing filing in sixth paragraph.)

To contact the reporter on this story:
Madlin Mekelburg in Austin at mmekelburg@bloomberg.net

To contact the editors responsible for this story:
Misyrlena Egkolfopoulou at megkolfopoul@bloomberg.net

Steve Stroth, Peter Jeffrey

© 2025 Bloomberg L.P. All rights reserved. Used with permission.