Boeing Faces Potential Criminal Prosecution As Crash Victims' Families Demand Justice: 'Throw Out The DPA'

In the latest development, families of victims from the 2018 and 2019 Boeing 737 MAX crashes are calling on the U.S. Justice Department to prosecute Boeing Co. BA over ongoing safety concerns.

What Happened: The families are set to meet with Justice Department officials, arguing that Boeing breached a 2021 deal with prosecutors, Reuters reported on Wednesday. This deal, known as a deferred prosecution agreement (DPA), mandated Boeing to revamp its compliance program in the aftermath of the crashes, which claimed 346 lives.

Justice Department officials have a six-month window post the DPA’s expiration to decide whether to prosecute Boeing on charges of defrauding the Federal Aviation Administration or to explore other alternatives.

The victims’ families are pushing for an independent monitor to ensure Boeing’s adherence to the agreement, a stipulation not included in Boeing’s original deal.

Boeing had agreed in January 2021 to pay $2.5 billion to settle a criminal investigation into the company’s conduct surrounding the crashes. The agreement included compensating the victims’ families and overhauling its compliance practices.

“What we’re saying to DOJ is, throw out the DPA,” stated a relative of one of the victims.

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On Jan. 5, a panel detached from a new Boeing 737 MAX 9 jet during an Alaska Airlines flight, just two days prior to the expiration of the DPA. This incident is now under investigation as part of a wider probe into whether Boeing violated the DPA.

Why It Matters: Recent events have put Boeing under intense scrutiny. In March, U.S. Transportation Secretary Pete Buttigieg stated that the Federal Aviation Administration would rigorously assess Boeing following a fuselage blowout on an Alaska Air flight.

Furthermore, Boeing’s public image has been tarnished by scandals, including severing ties with a lobbying firm involved in the 737 Max crisis management and facing supplier shortages affecting its 787 production.

Price Action: On Tuesday, Boeing stock closed 0.76% lower at $169.18 as per Benzinga Pro.

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