Justice Department says Boeing violated deal that avoided prosecution after 737 Max crashes

It is now up to the Justice Department to decide whether to file charges against the aircraft maker amid increasing scrutiny over the safety of its planes.The logo for Boeing appears on a screen above a trading post on the floor of the New York Stock Exchange, July 13, 2021.WASHINGTON — Boeing has violated a settlement that allowed the company to avoid criminal prosecution after two deadly crashes involving its 737 Max aircraft, the Justice Department told a federal judge on Tuesday.

Boeing reached a $2.5 billion settlement with the Justice Department in January 2021 to avoid prosecution on a single charge of fraud – misleading regulators who approved the 737 Max. Boeing blamed the deception on two relatively low-level employees. Glenn Leon, head of the Justice Department criminal division's fraud section, said in the letter filed in Texas federal court that Boeing failed to make changes to prevent it from violating federal anti-fraud laws — a condition of the the 2021 settlement.

Paul Cassell, a lawyer who represents families of passengers who died in the Max crash in Ethiopia, called it a “positive first step, and for the families, a long time coming.”

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