Boeing Avoids Criminal Charge Over Two Fatal 737 Max Crashes As Judge Tosses Case At DOJ Request

• The two fatal crashes occurred in 2018 and 2019.
• The first one involved the Lion Air Flight 610 in Indonesia in 2018, while the second one was the Ethiopian Airlines Flight 302 in 2019.
• A total of 346 people were killed in the crashes.

Boeing Co. (BA) on Thursday reportedly avoided a criminal charge over two fatal crashes involving the Boeing 737 Max jet.

District Judge Reed O’Connor in Fort Worth allowed a request from the U.S. Department of Justice (DOJ) to dismiss a criminal case filed by the department. A total of 346 people were killed in the two Boeing 737 Max jet crashes.

Boeing’s shares were up nearly 1% in Thursday’s opening trade. Retail sentiment on Stocktwits around the company trended in the ‘bearish’ territory at the time of writing.

Accountability For Safety

In his order, O’Connor stated that the families of victims who were against the dismissal are “correct” in saying that the non-prosecution agreement reached between the DOJ and Boeing “fails to secure the necessary accountability to ensure the safety of the flying public.”

The two fatal crashes occurred in 2018 and 2019. The first incident involved Lion Air Flight 610 in Indonesia in 2018, while the second incident was Ethiopian Airlines Flight 302 in 2019.

“The Court recognizes that ‘in every political institution a power to advance the public happiness involves a discretion that may be abused.’ Nevertheless, poor discretion may not be countered with judicial overreach,” O’Connor said.

Terms Of Settlement

In a filing with the U.S. Securities and Exchange Commission (SEC) in June, Boeing revealed the terms of settlement it had reached with the DOJ.

Boeing said it would pay or invest up to $1.1 billion in fines and compensation to the families of the victims. Of this, $444.5 million will go to the families of those who died in the 737 Max crashes in 2018 and 2019.

The company will invest $445 million toward improving its compliance, safety, and quality programs, it said in the filing.

It has also paid $243 million as a criminal penalty, which it agreed to in 2021.

BA stock is up 13% year-to-date and 36% over the past 12 months.

Also See: Will Tesla Shareholders Approve Elon Musk's Compensation Package? Here's What Prediction Markets Think

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