According to The New York Times on Friday, the US Department of Justice is mulling discussing a deal with Boeing that would spare the massive aerospace firm from criminal prosecution in exchange for the appointment of a federal supervisor to monitor the company’s progress towards safety reforms.
The parameters of the potential alternative settlement, known as a deferred prosecution agreement, or DPA, are still up for negotiation, according to people involved with the talks who spoke with the newspaper.
In an email to a civil party attorney obtained by AFP, DOJ official Glenn Leon, chief of the fraud section criminal division, stated that the agency “has not made a decision” regarding its course of action with Boeing.
After concluding in May that Boeing could face criminal charges for breaching a criminal settlement following two fatal 737 MAX crashes in 2018 and 2019, which resulted in the loss of 346 people, the DOJ is now considering its next course of action.
However, the Times said that after much internal deliberation, Justice officials “seem to have concluded that prosecuting Boeing would be too legally risky,” citing people who were familiar with the conversations.
According to the publication, officials also think that appointing a watchdog would be “a quicker, more efficient way” to guarantee that safety and quality control improvements are accomplished.
The DOJ informed the case’s judge last month that it would make a ruling by July 7 at the latest.
Paul Cassell, an attorney representing families in the criminal lawsuit against Boeing, received an email from DOJ’s Leon stating that the Times account “was simply not correct.”
Midway through June, the ailing aircraft manufacturer refuted the department’s findings; nevertheless, it has now acknowledged the seriousness of the safety issue, and CEO Dave Calhoun informed Congress that Boeing is “taking action and making progress.”
Justice issued an initial DPA in January 2021, wherein Boeing consented to pay $2.5 billion to resolve fraud charges related to the 737 MAX’s certification.
However, since the beginning of 2023, the manufacturer has encountered numerous issues with production and quality control on its commercial aircraft. In addition, there have been events during mid-flight, such as the January incident in which a door plug panel flew off an Alaska Airlines 737 Max 9.
According to the DOJ, Boeing is now subject to prosecution for breaking multiple terms of the original agreement, including ones requiring it to strengthen its internal controls to identify and prevent fraud.
The families of the victims are requesting a fine of about $25 billion and have demanded that Boeing and its officials face criminal charges.
The US government might settle Boeing’s infractions without a trial with a new DPA.
For Boeing, which is regarded as essential to both national security and the US aviation industry, this may be seen as a kind of victory.
The family’ attorney, Cassell, cautioned against finalising a settlement to avoid going to trial.
“We hope that the Department is not using its claim to have not yet made a ‘final decision’ as a ploy to gain additional time to hammer out a DPA deal with Boeing,” Cassell stated in a statement.
“The DPA agreement ended in failure. It’s time to “move forward with a trial and obtain a guilty verdict against Boeing,” he stated, adding that there is no reason to believe a second one would be any better.
According to the Times, these cases have previously driven businesses to declare bankruptcy, and if Boeing is found guilty, it might no longer be able to obtain federal contracts.
The defence, space, and security business unit of Boeing accounted for $25 billion in revenue in 2023, or about one-third of total sales.
