Boeing case puts a spotlight on plea agreements involving corporate defendants

After two jetliner crashes killed 346 people, a $2.5 billion settlement that let Boeing avoid criminal prosecution failed to resolve questions about the safety of the aerospace giant’s planes.

Federal prosecutors now accuse the company of failing to live up to terms of the 2021 settlement. Boeing has agreed to plead guilty to a felony fraud charge in a new deal with the Justice Department. The department hopes to file the detailed plea agreement Friday, but says it may need “a few more days.”

Experts on corporate behavior say whether the new agreement has a more lasting impact on safety than the earlier settlement could come down to how much power is placed in the hands of an independent monitor who is assigned to oversee Boeing for three years. Prosecutors made the appointment of such a monitor a condition of the plea deal, which also calls for Boeing to pay a new $243.6 million fine.

“Your real concern is protecting against the loss of future lives in future crashes, and that is something that the monitor can have more impact on than simply the amount of the fine,” said John Coffee, a law professor at Columbia University who studies corporate governance and white-collar crime.

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