The U.S. Justice Department (DOJ) has reached an agreement with Boeing that would allow the aerospace giant to avoid criminal prosecution in a fraud case tied to two fatal 737 Max crashes that killed 346 people in 2018 and 2019.
Under the proposed deal, Boeing would pay more than $1.1 billion, including an additional $445 million in compensation for the victims' families. In exchange, the DOJ would dismiss the fraud charge, sparing Boeing from a criminal conviction that could threaten its federal contracts.
“We are confident that this resolution is the most just outcome with practical benefits,” a DOJ spokesperson said in a statement. “Nothing will diminish the victims’ losses, but this resolution holds Boeing financially accountable, provides finality and compensation for the families, and improves safety for future air travelers.”
The agreement has drawn sharp criticism from some victims’ families, who argue that financial penalties alone fail to deliver meaningful accountability. Many have long demanded a public trial, prosecution of former Boeing executives, and harsher sanctions.
“This kind of non-prosecution deal is unprecedented and obviously wrong for the deadliest corporate crime in U.S. history,” said Paul Cassell, an attorney representing some of the families. He vowed to challenge the deal in court.
The two crashes—in Indonesia in October 2018 and Ethiopia in March 2019—were linked to a faulty flight control system known as MCAS. Boeing had failed to disclose key details about the system to pilots and regulators, including its ability to automatically push the plane’s nose down based on a single sensor reading.
The DOJ initially charged Boeing in 2021 with defrauding the Federal Aviation Administration (FAA) by misleading regulators about MCAS. The company avoided prosecution by agreeing to a $2.5 billion settlement and a three-year compliance plan.
However, prosecutors later found Boeing had failed to uphold its commitments, leading to a renewed push for accountability. Last July, Boeing agreed to plead guilty to criminal fraud, but a federal judge rejected the deal in December, citing concerns over diversity and equity policies in selecting a compliance monitor.
The latest agreement, outlined in court filings on Friday, still requires final approval. If accepted, it would close a painful chapter for Boeing—but leave many grieving families unsatisfied.