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US DOJ finds Boeing breached deferred prosecution deal

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The United States Department of Justice revealed earlier today that Boeing had breached its obligations under a 2021 deferred prosecution agreement

that shielded the company from criminal prosecution in the wake of two 737 MAX fatal crashes that killed 346 people.

In a court filing in Texas, the DOJ said that Boeing failed to “design, implement, and enforce a compliance and ethics program to prevent and detect violations of the U.S. fraud laws throughout its operations.”  As a result, Boeing is now subject to criminal prosecution, but the government has not yet determined how it will proceed.

The DOJ has until July 7th to determine its actions.  Families of the crash victims and their lawyers argued that  Boeing failed to overhaul its compliance program and will be urging prosecution.  Counsel for crash victims and the DOJ will meet in late May to examine potential remedies to Boeing’s conduct.  Alternatives, such as additional compensation or fines, will likely be considered to avoid a long trial.

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