Boeing Committed ‘The Deadliest Corporate Crime in U.S. History’ and Should Be Fined $24 Billion, Victims’ Families Say

Families of the victims of two Boeing 737 Max crashes are demanding that the company be fined $24 billion, labeling the incidents as the “deadliest corporate crime in US history.” On Wednesday, these families urged the Department of Justice (DOJ) to impose the maximum possible fine in a criminal trial against Boeing.

The plea comes as the DOJ considers prosecuting Boeing for a series of safety violations. Last month, the DOJ indicated that Boeing’s recent safety lapses and mishaps violated a 2021 agreement, which had allowed the company to avoid charges related to the 737 Max crashes in Indonesia (October 2018) and Ethiopia (March 2019) that claimed 346 lives.

The families’ attorney, Paul Cassell, emphasized the urgency of the matter in a 32-page letter, calling for an aggressive criminal prosecution and a swift jury trial. The letter also urged criminal prosecutions of responsible corporate officials, including former CEO Dennis Muilenburg, and the appointment of an independent corporate monitor to oversee Boeing’s safety measures.

“Because time is of the essence to avoid any statute of limitations from running out, the Department should begin these prosecutions promptly,” the families’ attorney wrote.

In May, the DOJ notified Boeing of its breach of the 2021 agreement following a January incident where a door plug blew off an Alaska Airlines flight shortly after takeoff. Boeing was given until last week to respond to the DOJ’s concerns and outline the steps it has taken to address the issue. The DOJ will inform the court by July 7 on how it plans to proceed.

Boeing, in response, stated that it believes it has honored the terms of the agreement and is prepared to engage with the DOJ with transparency. “We believe that we have honored the terms of that agreement and look forward to the opportunity to respond to the Department on this issue,” a Boeing spokesperson said.

On Tuesday, Boeing CEO Dave Calhoun testified before both Republican and Democratic senators, apologizing to the families of the 737 Max crash victims and admitting that Boeing has a long way to go to regain public trust. He acknowledged that Boeing is “far from perfect” and committed to improving its safety standards.

The 2021 deferred prosecution agreement required Boeing to pay $2.5 billion, most of which ($1.77 billion) was allocated to airlines that owned the grounded planes. Boeing also established a $500 million fund to compensate the victims’ families and agreed to pay a $244 million fine to the federal government.

Despite the significant $24 billion fine being demanded, it remains less than Boeing’s reported $31.9 billion in core operating losses since the second 737 Max crash in 2019. The company has identified over $20 billion in direct costs from the grounding of its best-selling jet, not including lost sales revenue and increased interest costs due to soaring debt.

Boeing did not immediately respond to CNN’s request for comment on the families’ recent demands.