Boeing and DOJ Still Negotiating Revised Plea Deal in 737 MAX Case

Boeing and DOJ Still Negotiating Revised Plea Deal in 737 MAX Case

The U.S. Department of Justice (DOJ) and Boeing are still in negotiations to revise a plea deal related to the two fatal 737 MAX crashes, according to a recent court filing. A previous agreement was rejected in December by U.S. District Judge Reed O’Connor due to concerns over a provision regarding diversity and inclusion in the selection of an independent monitor.

Both parties confirmed they are “continuing to work in good faith” toward a new agreement and requested an extension until February 16th to provide an update to the court. This timeline allows the incoming Biden administration time to review the matter. The original plea deal, reached in July, involved Boeing pleading guilty to a criminal fraud conspiracy charge. The agreement included a fine of up to $487.2 million and a commitment of $455 million towards safety and compliance improvements over a three-year probationary period under court supervision.

Judge O’Connor’s rejection stemmed from a sentence referencing the DOJ’s diversity policy in the selection of an independent monitor to oversee Boeing’s compliance. Families of the 346 victims of the 2018 and 2019 crashes have criticized the initial agreement, deeming it insufficient and failing to hold Boeing fully accountable.

If accepted, a revised plea deal would result in Boeing being formally convicted of conspiring to defraud the Federal Aviation Administration (FAA) regarding flawed software impacting the flight control systems of the 737 MAX aircraft involved in the accidents. The DOJ’s decision to pursue criminal charges against Boeing and negotiate a plea deal followed a determination in May that the company had violated a 2021 agreement that initially protected it from prosecution. This decision was further influenced by a January 5, 2024, incident involving an Alaska Airlines jet experiencing an in-flight door panel blowout, highlighting ongoing safety and quality concerns at Boeing.

This continued negotiation underscores the complexity and significance of the case, with implications for both Boeing’s reputation and the future of aviation safety regulations. The February 16th deadline will be a critical point in determining the next steps in this ongoing legal process.

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