Justice Department says Boeing violated 2021 agreement on 737 Max

A Boeing 737 MAX aircraft is photographed outside a Boeing factory in Renton, Washington, on March 25, 2024.

Stephen Brashear | Getty Images

boeing company The company could face U.S. prosecution after it violated a 2021 settlement that shielded it from criminal charges related to fatal 737 Max crashes, the Justice Department said on Tuesday.

Federal prosecutors said in a Texas court filing that they were still determining “how this matter will proceed” and that Boeing will have 30 days to respond.

The U.S. Department of Justice said the aircraft manufacturer violated the agreement “by failing to design, implement, and enforce a compliance and ethics program to prevent and detect violations of U.S. fraud laws throughout its operations.”

Boeing has denied these claims.

“We believe we have complied with the terms of the agreement and look forward to the opportunity to respond to the Department of Commerce on this issue,” Boeing said.

In January 2021, Boeing agreed to pay $2.5 billion to settle conspiracy charges with the Department of Justice. After a roughly two-year investigation, the U.S. Department of Justice accused the company of withholding information about its Max aircraft, which was involved in two crashes that killed all 346 people on board.

The Justice Department said at the time that Boeing admitted that two of its 737 Max technical pilots “deceived” the Federal Aviation Administration about the functionality of the plane’s flight control system, which was later implicated in two crashes.

“This is a positive first step in what will be a long process for the families. But we need to see the Department of Justice take further action to hold Boeing accountable and plans to use the May 31 meeting to provide more details explain what we think will happen.

The planemaker came under intense scrutiny from the federal government after a door panel on a 737 Max 9 aircraft operated by Alaska Airlines exploded in mid-air on January 5. The bolts that fill in the optional emergency exit don’t appear to be in place.

The near-tragedy created a new crisis for Boeing just as it was trying to stabilize production and improve its reputation after crashes in 2018 and 2019.