U.S. District Judge Reed O’Connor has scheduled a hearing for October 11 to evaluate objections from families of the 346 victims of the Boeing 737 MAX crashes in 2018 and 2019. This hearing will focus on the planemaker’s recent agreement to plead guilty to a criminal conspiracy charge related to fraud against the Federal Aviation Administration (FAA).
On July 24, Boeing finalized a deal to plead guilty to conspiracy and agreed to pay up to $487 million, a resolution that followed breaches of a 2021 deferred prosecution agreement aimed at ensuring the company maintained safety protocols. Families of the victims contend that this financial penalty is insufficient, raising concerns that it does not adequately reflect the severity of Boeing’s actions, which they describe as “the deadliest corporate crime in U.S. history,” as noted by Judge O’Connor in a previous ruling.
In addition to the family objections, the Polish national airline LOT has expressed its own grievances regarding the plea deal. LOT, which owned and leased 14 Boeing 737 MAX aircraft grounded globally in March 2019, argues it should be afforded the same rights as the victims’ families in this case. The airline has claimed damages exceeding $250 million due to the grounding of its aircraft, further complicating the ongoing legal discussions.
Boeing and the Justice Department have refrained from commenting on the upcoming hearing. However, the Justice Department has previously advocated for the acceptance of the plea deal, asserting that it represents a significant step towards accountability and serves the public interest.
Under the terms of the plea deal, Boeing is required to allocate $455 million over three years to bolster its compliance, safety, and quality programs, alongside being subject to court-supervised probation. The planemaker will also be monitored by an independent party for three years to ensure adherence to safety measures.
Judge O’Connor retains the authority to mandate Boeing to pay restitution, which could provide additional compensation to the families of the victims beyond the settlements already received and the $500 million set aside for relatives under the previous agreement.
As this case continues to unfold, the outcome of the upcoming hearing could have significant implications for corporate accountability in the aviation industry and the families seeking justice for their loved ones.