US says no decision yet on whether to drop Boeing criminal case

Erin Applebaum, partner with Kreindler & Kreindler said that the family members have made clear that they’d oppose 'any deal that allows Boeing to escape responsibility' for its role in the two crashes, which killed 346 people.

By Julie Johnsson

The US Justice Department told a federal judge in Texas it hasn’t decided whether to enter into an agreement with Boeing Co. that would drop a criminal charge related to two fatal 737 Max crashes, and that federal prosecutors are giving the families of victims another chance to weigh in.

Government lawyers briefed the families for two hours on Friday on a “possible framework” for a non-prosecution agreement with Boeing, but said no draft agreement has been exchanged between the company and prosecutors, according to a court filing Saturday to US District Judge Reed O’Connor, who has been overseeing the long-running criminal proceedings tied to the crashes in 2018 and 2019.

The case is being closely watched as a bellwether for how the Justice Department under President Donald Trump handles high-profile corporate prosecutions. Last year, under the Biden administration, Boeing agreed to plead guilty to criminal conspiracy and pay a fine, but that deal was scrapped by O’Connor, who objected to parts of the agreement. Boeing and the Justice Department have been in talks on a revised agreement.

Family members have made clear that they’d oppose “any deal that allows Boeing to escape responsibility” for its role in the two crashes, which killed 346 people, said Erin Applebaum, partner with Kreindler & Kreindler. “If they won’t try the case, there has to be a guilty plea alongside a strong plea deal.”

According to the Saturday filing, a proposed framework for the non-prosecution agreement being discussed would include the maximum fine allowed by statute, require Boeing to spend on improving its compliance, retain an independent monitor and create another fund to compensate the families. If a deal is struck, prosecutors would then file a motion dismissing the criminal case, which is set for trial June 23.

The Justice Department said it won’t decide whether to enter the settlement agreement or proceed to trial until after it has finished conferring with the families. Prosecutors gave the families, who want the Boeing case to go to trial, until May 22 to provide written statements.

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