Boeing, DOJ Reportedly Weigh Non-Prosecution Deal In 737 MAX Case Amid Victims’ Outrage

The U.S. Department of Justice is reportedly in active talks with Boeing (BA) over a potential non-prosecution agreement (NPA) that would allow the planemaker to avoid a felony conviction tied to its role in two fatal 737 MAX crashes.

According to a Reuters report, the move marks a sharp turn in a years-long criminal case that has drawn intense scrutiny from regulators, lawmakers, and victims’ families.

Boeing had previously agreed to plead guilty to a criminal fraud conspiracy charge and pay up to $487.2 million in fines for misleading the Federal Aviation Administration (FAA) about a flight control system linked to crashes in Indonesia and Ethiopia that killed 346 people. 

However, a federal judge rejected that plea deal in December, citing concerns including provisions about the diversity of an independent monitor tasked with oversight.

In place of a guilty plea, the DOJ is now considering an NPA — a deal that would allow Boeing to avoid a criminal conviction altogether, potentially preserving its eligibility for lucrative U.S. government contracts, including those with the Department of Defense and NASA. 

According to Reuters, no final decision has been made, and the parties have not exchanged final legal papers.

The report said that crash victims' families have condemned the shift in approach. “The Justice Department appears set on letting Boeing off the hook—again,” said a lawyer representing the families, who labeled Boeing a “repeat offender.” 

The families argue that the company violated a 2021 deferred prosecution agreement and should be held fully accountable for what they describe as “deadly lies.”

The report also added that the DOJ is proposing Boeing contribute an additional $444.5 million to a victims’ fund on top of the $500 million previously paid. The new amount would be distributed evenly among the victims’ families.

On Wednesday, Boeing CEO Kelly Ortberg appeared alongside President Donald Trump in Qatar this week to announce a record-setting widebody jet order from Qatar Airways

Trump has racked up orders for Boeing as part of the trade deals he’s been making with other countries. This included a $10 billion order for 32 Boeing 787-10 Dreamliner aircraft for British Airways, a historical sale of Boeing aircraft to Qatar Airways, and a $14.5 billion commitment from Etihad Airways to invest in 28 Boeing 787 and 777X aircraft powered by GE Aerospace engines. 

Boeing’s stock edged 0.6% lower in afternoon trade. The shares have gained 14.9% this year and are up 15.3% over the past 12 months.

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