US Department of Justice considers prosecuting Boeing for violating 2021 Max fatality agreement

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Dave Calhoun CEO of Boeing
Dave Calhoun CEO of Boeing

The US Department of Justice will decide by July 7 whether to prosecute Boeing for violating a 2021 Deferred Prosecution Agreement related to the fatal crashes of two B737 MAX aircraft in 2018 and 2019, accusing the manufacturer of not maintaining an adequate compliance and ethics program as required.

Boeing disputes the allegations and has until June 13 to respond, stating that it believes it has honored the agreement’s terms and plans to engage with the DOJ transparently, particularly following an incident involving an Alaska Airlines B737 MAX in January.

The DOJ determined that Boeing breached its DPA obligations by failing to implement a compliance and ethics program to prevent fraud, suggesting that Boeing could face prosecution and additional penalties if found guilty, exacerbating financial and reputational damages.

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Boeing has already paid significant penalties under the DPA, including more than USD 2.5bn to various stakeholders, and the DOJ will consult with families of crash victims and their legal counsels before deciding on further action, which could include stricter oversight and additional penalties. 

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