Boeing Violated Deal That Avoided Prosecution After 737 Max Crashes: Justice Department

WASHINGTON (AP) — Boeing has violated a settlement that allowed the company to avoid criminal prosecution after two deadly crashes involving its 737 Max aircraft more than five years ago, the Justice Department told a federal judge on Tuesday.

It is now up to the Justice Department to decide whether to file charges against Boeing. Prosecutors will tell the court no later than July 7 how they plan to proceed, department said.

New 737 Max jets crashed in 2018 in Indonesia and 2019 in Ethiopia, killing 346 people. Boeing reached a $2.5 billion settlement with the Justice Department in January 2021 to avoid prosecution on a single charge of fraud — misleading federal regulators who approved the plane. Boeing blamed the deception on two relatively low-level employees.

In a letter filed Tuesday in federal court in Texas, Glenn Leon, head of the Justice Department criminal division’s fraud section, said Boeing violated terms of the settlement by failing to make promised changes to detect and prevent violations of federal anti-fraud laws.

The determination means that Boeing could be prosecuted “for any federal criminal violation of which the United States has knowledge,” including the charge of fraud that the company hoped to avoid with the settlement, the Justice Department said.

However, it is not clear whether the government will prosecute Boeing.

“The Government is determining how it will proceed in this matter,” the Justice Department said in the court filing. Boeing will have until June 13 to respond the government’s allegation, and department said it will consider the company’s explanation “in determining whether to pursue prosecution.”

Boeing Co., which is based in Arlington, Virginia, disputed the Justice Department’s