"U.S. District Chief Judge Reed O'Connor will hear arguments on a motion by the federal government to dismiss a felony fraud charge against Boeing in connection with the crashes that killed 346 people off the coast of Indonesia and in Ethiopia. In exchange, Boeing said it would pay or invest another $1.1 billion in fines, compensation for the crash victims' families, and internal safety and quality measures."
"The hearing in Fort Worth comes more than four years after the Justice Department first announced it had charged Boeing in January 2021 and reached a $2.5 billion settlement with the aircraft maker. That deal would have protected Boeing from criminal prosecution if it strengthened its ethics and legal compliance programs, but prosecutors revived the charge last year after they said Boeing had violated the agreement."
"Boeing decided to plead guilty instead of going to trial, but in December 2024, O'Connor rejected that plea agreement. O'Connor, who was appointed by President George W. Bush, cited concerns he had over how diversity policies both at the federal government and at Boeing could influence the selection of an independent monitor charged with overseeing the company's promised reforms."
A federal court hearing in Fort Worth will determine whether Boeing faces criminal prosecution over two 737 Max crashes that killed 346 people off Indonesia and Ethiopia. The Justice Department moved to dismiss a felony fraud charge in exchange for Boeing paying or investing another $1.1 billion for fines, victim compensation, and safety measures, atop a prior $2.5 billion settlement. Prosecutors allege Boeing deceived regulators about a flight-control system implicated in the 2018 and 2019 crashes. A guilty plea was rejected by Judge Reed O'Connor over concerns about monitor selection tied to diversity policies, allowing Boeing to challenge the charging rationale. Relatives seek a public trial and harsher penalties.
Read at Fast Company
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