The families of the Boeing crash victims are against the plea deal proposed by the DOJ and Boeing, while the aerospace giant and the government ask the court to approve it.

Boeing families demand increased penalties

The families of the Boeing crash victims are against the plea deal proposed by the DOJ and Boeing, while the aerospace giant and the government ask the court to approve it.
The families of the Boeing crash victims are against the plea deal proposed by the DOJ and Boeing, while the aerospace giant and the government ask the court to approve it.

Despite opposition from the families of hundreds of people who died in two MAX jet crashes, federal prosecutors in Texas have reached a tentative plea deal with Boeing that both sides are asking the court to accept.

The deal with Boeing was agreed upon in July, but the process has been delayed due to opposition from the families of the victims and other entities.

Boeing is facing criminal charges due to two 737 MAX jet crashes in 2018 and 2019, resulting in the deaths of 346 individuals. The settlement includes an admission that Boeing employees lied to the Federal Aviation Administration about flight control software that contributed to the accidents.

Boeing building
Signage outside the Boeing Co. manufacturing facility in Renton, Washington, on Monday, Feb. 5, 2024. Boeing Co. found more mistakes with holes drilled in the fuselage of its 737 Max jet, a setback that could further slow deliveries on a critical program already restricted by regulators over quality lapses. (David Ryder/Bloomberg via Getty Images)

The lawyers for Boeing contended that the representatives of the crash victims were aware of the deal's terms prior to the Justice Department presenting it to the aerospace company.

The arms-length negotiation was conducted appropriately with no collusion, as stated in a Wednesday filing.

Boeing's customers and the victims' families worked with federal prosecutors during the case.

Boeing Max Supplier
A Boeing 737 Max jet, piloted by Federal Aviation Administration Chief Steve Dickson, prepares to land at Boeing Field following a test flight in Seattle. (AP Photo/Elaine Thompson, File)

"Senior Department leadership and career prosecutors have frequently and thoroughly consulted with Families and Airline Entity Customers at critical stages of the case, including discussing the terms of a plea agreement, according to Sean Tonolli, the DOJ's senior deputy chief of the fraud section. Their opinions have been taken into account and have influenced the government's decision-making process."

The deal, which minimizes the deaths of hundreds of people, has been reached between Boeing and the government, with Boeing pleading guilty to a single count of conspiracy to defraud the government, according to lawyers for the victims' families.

"Boeing and the Government have agreed to let Boeing plead to one charge of conspiracy to defraud the Government in the proposed plea agreement, in an attempt to avoid the truth that Boeing knowingly engaged in conduct that resulted in the deaths of 346 people. However, the guilt of Boeing has already been determined by this court."

Boeing building
The Boeing building is seen Saturday, Sept. 17, 2022 in Chicago. (Kamil Krzaczynski for Planet Chronicle)

The lawyers of the victims argued that the court had previously ruled that the crashes would not have happened if it weren't for Boeing's fraud.

The lawyers of the victims wrote that corporate criminals, such as Boeing, should not evade the truth or the consequences of their actions, especially in cases where the charged offense resulted in death or involved a foreseeable risk of death.

The victims' lawyers have proposed that Boeing establish an escrow fund in the event of future accidents, in addition to stiffer fines and restitution.

Boeing's lawyers argued that there was insufficient evidence to prove, beyond a reasonable doubt, that their fraud was the cause of the plane crashes.

Boeing would be required to pay restitution to the victims' families, invest $455 million in compliance and safety programs, pay a criminal fine of $487.2 million, and submit to an independent monitor as part of the deal. Half of the criminal fine has already been paid after Boeing violated the terms of a prior settlement.

Earlier this year, Boeing CEO Dave Calhoun announced his resignation as the company grapples with mounting legal and public issues. Several other executives and board members, including the head of the 737 MAX program, also announced their departure from the company.

Boeing did not immediately respond to a request for comment Thursday.

Planet Chronicle' Landon Mion contributed to this report.

by Michael Ruiz

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