The Justice Department said Tuesday that Boeing violated a 2021 settlement related to problems with the company’s 737 Max model that led to two fatal plane crashes in 2018 and 2019.
In a letter to a federal judge, the department said Boeing failed to “design, implement and enforce” an ethics program to prevent and detect violations of U.S. fraud laws in the company’s operations. The creation of this program was a condition of the settlement with Boeing, which also resulted in a $2.5 billion penalty.
The Justice Department’s decision means it can move forward with a 2021 criminal complaint accusing Boeing of conspiring to defraud the Federal Aviation Administration, although Boeing can appeal Tuesday’s decision.
In a statement, Boeing said the company believes it has complied with the terms of the settlement, adding that it looks forward to the opportunity to respond.
“In doing so, we will work with the department with the utmost transparency, as we have done throughout the term of the agreement,” Boeing said in its statement.
The Justice Department declined to comment. Paul G. Cassell, an attorney representing families of victims of the deadly plane crashes, said his clients planned to meet with the government on May 31 to discuss next steps in the case.
When the government reached a settlement with Boeing in January 2021, many families of the crash victims said the Trump administration had been too lenient on the plane maker.
“This is a positive first step and will be a long time coming for families,” Mr Cassell said. “But we need to see further action from the DOJ to hold Boeing accountable.”
The 737 Max 8 plane crashes in Indonesia and Ethiopia killed 346 people, prompting the FAA to ground the entire 737 Max fleet. An investigation found that in both crashes, a maneuvering system designed to help prevent stalls in flight was mistakenly triggered.
In a separate settlement, the Securities and Exchange Commission said Boeing made misleading representations about the safety of the 737 Max in public statements after both crashes, despite knowing that the maneuvering system was an ongoing safety problem.
The Justice Department made its finding at a tumultuous time for Boeing, which has faced intense regulatory scrutiny since a door panel from a 737 Max 9 plane exploded during an Alaska Airlines flight from Portland, Oregon, in January. In March, the company announced that its chief executive, Dave Calhoun, would step down at the end of the year, as would Stan Deal, the head of the division that makes planes for airlines and other commercial customers.
Mr. Calhoun replaced Dennis A. Muilenburg, who led the company during the 2018 and 2019 crashes. Boeing fired Mr. Muilenburg, whose performance during the crisis angered lawmakers and alienated victims’ families.
Mark Walker contributed reporting.
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2024-05-15 01:43:37
www.nytimes.com
