US Judge to Hold Hearing on Family Objections to Boeing Plea Deal

By David Shepardson

A U.S. District Judge has announced a hearing set for October 11 to review objections from the families of victims who perished in two Boeing 737 MAX crashes. These families are contesting the manufacturer’s agreement to plead guilty to a criminal fraud conspiracy.

On July 24, Boeing reached an agreement to admit guilt for conspiring to deceive the Federal Aviation Administration (FAA) and is expected to pay up to $487 million for violating a prior deferred prosecution deal from 2021.

Relatives of the 346 individuals who lost their lives in the two crashes in 2018 and 2019 argue that the financial penalty is insufficient and have expressed other concerns regarding the plea agreement. The judge will also evaluate similar objections raised by LOT Polish Airlines, which asserts it should have rights comparable to those of the victims’ families. LOT claims that it incurred at least $250 million in damages related to the 14 Boeing 737 MAX aircraft it owned and leased when the model was grounded globally in March 2019.

Boeing and the Justice Department did not immediately respond to the judge’s announcement. The Justice Department previously urged the judge to endorse the plea agreement, positing that it represents a significant and appropriate resolution that holds Boeing accountable and serves the public interest.

Family members have referenced the judge’s remarks from a February 2023 ruling to advocate for harsher consequences, noting that "Boeing’s crime may properly be considered the deadliest corporate crime in U.S. history."

According to the Justice Department, Boeing engaged in risky practices within its factories and failed to maintain accurate airplane records, which contributed to the violations of the 2021 agreement. This determination followed an incident in January involving an in-flight panel blowout on an Alaska Airlines 737 MAX, which highlighted ongoing safety and quality concerns at Boeing, just two days before the expiration of the 2021 agreement that had protected it from prosecution.

The plea deal stipulates that Boeing will allocate $455 million towards enhancing its compliance, safety, and quality programs over three years under court supervision. Additionally, the company will be monitored by an independent entity for the same three-year period.

The judge also has the authority to mandate Boeing to provide restitution to victims’ families, which could exceed the compensation already received by some through previous settlements or as part of a $500 million fund established under the prior agreement.