Families of 737 crash victims urge rejection of Boeing deal

By Madlin Mekelburg

Family members of people killed in two fatal crashes of Boeing Co’s 737 Max jets urged a federal judge to reject a proposed deal the company reached with US prosecutors that would allow the planemaker to avoid a criminal charge.

Lawyers for 15 families argued Boeing should stand trial for criminal conspiracy as the government had originally planned, to hold the company more accountable for the deaths of 346 people, according to a court filing Wednesday. Some family members asked the judge to appoint a special prosecutor to oversee the case.

“The conspiracy charge against Boeing has been pending now for more than four years,” the families’ lawyers said. “Boeing has admitted all the facts necessary to prove it is guilty. And yet, the government now moves to dismiss the charge.” They added, “It is difficult to imagine a case more deserving of a public trial than this one.”

The US Justice Department in May asked US District Judge Reed O’Connor in Fort Worth to dismiss the case as part of a proposed settlement reached with Boeing. Under the deal, the planemaker agreed to pay more than $1.1 billion in fees and fines, while taking steps to strengthen internal quality and safety measures. 

In return, the company will avoid criminal prosecution.

Prosecutors have argued that the deal “secures meaningful accountability” and ensures Boeing faces penalties and oversight, an outcome they say would not be guaranteed if they took the case to trial.

Asked to comment on the relatives’ objections, a Boeing representative pointed to a May 29 company statement. “Boeing is committed to complying with its obligations under this resolution, which include a substantial additional fine and commitments to further institutional improvements and investments,” the company said.

In Wednesday’s filing, lawyers for family members who oppose the agreement said it would essentially allow the company to “buy its way out of a criminal conviction.”

The families also claimed language in the deal would obligate the government to not prosecute Boeing even if O’Connor rejects the motion to dismiss the case, which would skirt full judicial review.

“If this court approves the parties’ manoeuvre in this widely publicized case, then this unprecedented approach will likely become the blueprint for all future dismissal motions in federal criminal prosecutions,” they said in the filing.

In a separate filing, some family members asked the judge to appoint an independent prosecutor to “restore integrity to these proceedings and ensure that justice — rather than politics — guides the resolution of this matter.”

Relatives of crash victims have spent years fighting for harsher penalties for Boeing following the two fatal crashes of its 737 Max jet in 2018 and 2019. Both crashes were linked to a flawed flight control system on the jets. 

The families said the fatal Air India crash earlier this month involving a Boeing 787 Dreamliner shows that “the stakes for aviation safety are very high.” The cause of the crash remains under investigation.

To be sure, some families support the settlement. But those who want Boeing to go to trial said the company had dangled money “in front of the families, apparently hoping that it will lead them to back off their efforts to hold Boeing accountable for killing their loved ones. And Boeing’s offer appears to have had the desired effect, at least with respect to a few families.” 

If O’Connor agrees to a dismissal, it would end the long-running criminal case against Boeing over the crashes. But it would also mark a notable reversal in the proceedings. Just last year, Boeing had agreed to plead guilty to the pending criminal conspiracy charge under a deal that was ultimately rejected by O’Connor.

Under the new settlement Boeing will admit to the underlying accusation of “conspiracy to obstruct and impede the lawful operation of the Federal Aviation Administration Aircraft Evaluation Group,” but that admission does not constitute a guilty plea.

The government said it could refile criminal charges against the company if Boeing is accused of violating the terms of the two-agreement. Some family members dispute that claim, saying the statute of limitations has already expired. 

The agreement requires Boeing to pay a total of $1.1 billion in assorted fines and fees. The total includes: 

• $487.2 million for a criminal penalty, half of which the company already paid to the government during an earlier phase of the case

• $444.5 million for a new “Crash-Victims Beneficiaries Fund” that will be divided evenly by crash victim

• $455 million in investments to bolster its compliance, safety and quality programs

Boeing would be required to retain a so-called independent compliance consultant to oversee its efforts to improve the effectiveness of its anti-fraud compliance and ethics program. The consultant will be expected to make recommendations for improvements and report their findings directly to the government.

The case is US v. Boeing, 21-cr-005, US District Court, Northern District of Texas (Fort Worth).