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Boeing faces possible criminal indictment – Reuters

US prosecutors have reportedly recommended that the aircraft maker be charged for failing to abide by terms of a fraud settlement.

 

The US Department of Justice (DOJ) is reportedly considering a criminal indictment of aerospace giant Boeing for allegedly violating the terms of a 2021 settlement that shielded the company from charges over airliner crashes that killed 346 people.

Prosecutors have recommended to senior DOJ officials that charges be filed against Boeing, Reuters reported on Sunday, citing unnamed people familiar with the department’s deliberations. A decision on whether to prosecute the company is due by July 7.

The DOJ claimed in a court filing last month that Boeing had breached a 2021 agreement over allegations that the company defrauded federal aviation authorities in connection with fatal 737 MAX airliner crashes in 2018 and 2019. Under the settlement, the aircraft maker avoided prosecution by agreeing to pay a $2.5 billion fine and implement new compliance and ethics practices to prevent violations of US fraud laws.

Boeing responded by arguing that it had honored the terms of the 2021 agreement. However, the company has suffered a spate of safety incidents in recent months, including an inflight blowout of a door panel on a 737 MAX 9 operated by Alaska Airlines.

The Alaska scare occurred just two days before the DOJ settlement was scheduled to expire. Prosecutors had previously agreed to seek formal dismissal of the deferred fraud charge as long as Boeing complied with the deal’s terms over a three-year period…

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