Boeing Nears Deal to Avoid Trial in 737 Max Case

Boeing and the U.S. Department of Justice are reportedly close to finalizing an agreement that would allow the aerospace company to avoid a criminal trial or a guilty plea in connection with two fatal crashes involving its 737 Max aircraft. The tentative resolution follows the collapse of a previous plea deal and comes amid ongoing scrutiny of Boeing’s safety practices.

The discussions stem from the Justice Department’s determination that Boeing violated a 2021 deferred prosecution agreement related to the crashes of two 737 Max jets, which killed 346 people in total. The crashes were linked to flaws in the aircraft’s flight-control system, which regulators said Boeing had misrepresented during the jet’s certification process.

In 2023, Boeing had agreed to plead guilty to a criminal fraud charge, but that deal was rejected by a federal judge who raised concerns over the adequacy of the proposed terms and cited issues involving corporate governance and diversity oversight. The rejection reopened the possibility of a full trial.

While a final nonprosecution agreement has yet to be confirmed, sources familiar with the matter say the new deal could involve Boeing making payments to the families of crash victims while avoiding a felony conviction. Such a conviction could have jeopardized Boeing’s eligibility to secure federal defense contracts—a significant concern given the company’s role as a major U.S. defense contractor and leading exporter.

Boeing declined to comment on the ongoing negotiations, and the Justice Department has not issued a statement. If finalized, the deal would help Boeing avoid further reputational and financial fallout, though public and political scrutiny of its practices is likely to continue.

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Sources: AirGuide Business airguide.info, bing.com, cnbc.com