Justice Department: Boeing violated deal that avoided prosecution after crashes

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Prosecutors will tell the court no later than July 7 how they plan to proceed.

The logo for Boeing appears on a screen above a trading post on the floor of the New York Stock Exchange

New 737 Max jets crashed in 2018 in Indonesia and 2019 in Ethiopia, killing 346 people. Boeing reached a 2.5 billion dollar 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.

“The Government is determining how it will proceed in this matter,” the Justice Department said in the court filing. Boeing has come under renewed scrutiny since that Alaska Airlines flight in January, when a door plug blew out of a 737 Max, leaving a gaping hole in the side of the jetliner. Paul Cassell, a lawyer who represents families of passengers in the second crash, said the Justice Department’s determination that Boeing breached the settlement terms is “a positive first step, and for the families, a long time coming”.

 

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