By Mike Spector and Chris Prentice
NEW YORK (Reuters) – U.S. prosecutors are holding meetings with Boeing and families of fatal crash victims as the July 7 deadline approaches for the Justice Department to make a decision on potential criminal charges against the aircraft manufacturer. This information comes from two individuals familiar with the situation and correspondence reviewed by Reuters.
Officials from the Justice Department met with Boeing’s legal team on Thursday to discuss the government’s determination that the company violated a deferred prosecution agreement (DPA) from 2021. The DPA had protected Boeing from criminal prosecution related to the two 737 MAX crashes in 2018 and 2019 that resulted in the deaths of 346 people.
Additionally, federal prosecutors are scheduled to meet with family members of the victims on Sunday to provide updates on the progress of their investigation. The U.S. officials are working on a tight timeline, as indicated in an email from the DOJ reviewed by Reuters.
During the Thursday meeting, Boeing’s lawyers from Kirkland & Ellis presented arguments to officials from the Deputy Attorney General’s office, asserting that prosecution would be unwarranted and that there is no basis for nullifying the 2021 agreement.
It is common for companies under investigation by the DOJ to make appeals when negotiating potential resolutions. The email mentioned that officials seek input from family members as they determine the next steps. Prosecutors from the Justice Department’s criminal fraud division and the U.S. attorney’s office in Dallas will be present at the Sunday meeting.
Both the DOJ and Boeing declined to provide comments on the matter. Boeing has previously stated that it has upheld the terms of the settlement and has formally expressed disagreement with the finding of agreement violation.
According to sources, U.S. prosecutors have suggested bringing criminal charges against Boeing after finding that the company breached the 2021 agreement. Discussions are ongoing regarding a potential resolution to the investigation, and there is no certainty that charges will be pursued.
The recent discussions follow a mid-flight panel blow-out on a Boeing aircraft on Jan. 5, just before the expiration of the DPA. This incident highlighted ongoing safety and quality concerns at Boeing.
Boeing was on the verge of avoiding prosecution for a criminal charge of conspiracy to defraud the FAA in connection with the 2018-2019 crashes. The company had agreed to overhaul its compliance practices, submit regular reports over three years, and pay $2.5 billion to settle the investigation.
In May, officials concluded that Boeing had breached the agreement, exposing the company to potential prosecution. The DOJ stated in a court filing in Texas that Boeing had failed to establish an effective compliance and ethics program to prevent fraud law violations across its operations.
Image source: © Reuters. Boeing plant, Renton, Washington, June 25, 2024. Jennifer Buchanan/Pool via REUTERS