Boeing crash victims’ families oppose plea agreement as Justice Department, aerospace giant ask court to approve it

Federal prosecutors in Texas have reached a tentative settlement with Boeing that both sides are asking a court to accept despite fierce opposition from families of hundreds of people killed in twin MAX crashes, court documents show.

Boeing agreed to a settlement in July, but opposition from victims’ families and others has delayed the proceedings.

This criminal case against Boeing stems from two 737 MAX crashes in Indonesia and Ethiopia in 2018 and 2019 that killed 346 people. The agreement includes an admission that Boeing employees lied to the Federal Aviation Administration about flight-control software that played a role in the crashes.

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Signage is seen outside a Boeing Co. manufacturing plant in Renton, Wash., Monday, Feb. 5, 2024. Boeing Co. found more flaws in holes drilled in the fuselage of its 737 Max jetliner, which could further slow deliveries on a key program that has already been curtailed by regulators over quality shortcomings. (David Ryder/Bloomberg via Getty Images)

Boeing’s attorneys argued that representatives of the crash victims knew the terms of the deal even before Justice Department lawyers proposed it to the aerospace giant.

“In short, there was nothing collusive or improper in the manner in which these independent negotiations were conducted,” they wrote in a letter filed Wednesday.

Federal prosecutors agreed, telling the court they had been cooperating with victims’ families and Boeing customers throughout the case.

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A Boeing 737 Max plane piloted by Federal Aviation Administration Secretary Steve Dickson prepares to land at Boeing Field after a test flight in Seattle. (AP Photo/Elaine Thompson, archive)

“The crux of the matter is that the Department’s leadership and career prosecutors consulted extensively and repeatedly with Airline Family and Entity Clients at important points in the case, including to discuss the terms of the guilty plea agreement,” Sean Tonolli, senior deputy chief of the Justice Department’s Fraud Section, wrote in a statement to the court. “Their voices were heard, considered, and incorporated into the government’s decision-making process.”

But lawyers for the victims’ families said the deal, under which Boeing would plead guilty to a single count of conspiracy to defraud the government, minimizes the death toll of hundreds of people.

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“In the proposed plea agreement, Boeing and the government agreed to allow Boeing to plead guilty to one count, conspiracy to defraud the government, apparently hoping to avoid the obvious truth that Boeing knowingly engaged in conduct that caused the deaths of 346 people,” lawyers for the victims’ families wrote in an earlier letter. “Presumably, Boeing and the government hope that the Court will accept this fiction in order to favorably evaluate the plea agreement and the proposed sentencing terms. However, Boeing’s guilt has already been decided by this Court.”

The Boeing building is seen Saturday, Sept. 17, 2022, in Chicago. (Kamil Krzaczynski for FOX News)

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Victims’ lawyers cited an earlier ruling in which the same court found that “without Boeing’s fraud, the disasters would not have occurred.”

“Corporate criminals like Boeing should not be allowed to avoid the truth and the consequences of their actions, especially in circumstances such as this case where the alleged crime ‘resulted in death… or involved a foreseeable risk of death,’” the victims’ lawyers wrote.

In addition to higher fines and damages, victims’ lawyers are also proposing that Boeing set up a trust fund to deal with future disasters.

Justice Department lawyers argued they could not prove beyond a reasonable doubt that Boeing’s fraud caused the planes to crash.

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The agreement would require Boeing to pay compensation to victims’ families as determined by the court, invest $455 million in compliance and safety programs, and pay a criminal fine of $487.2 million — half of which has already been paid after Boeing breached the terms of a previous settlement. Boeing would also have to submit to an independent monitor.

Former Boeing CEO Dave Calhoun announced he would step down earlier this year as the company grapples with a growing number of legal and reputational issues. Other executives and board members, including the head of the 737 MAX program, have also said they will leave the company.

Boeing did not immediately respond to a request for comment made Thursday.

Landon Mion of Fox News contributed to this report.