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Boeing's 737 Max Can't Shake Its Past

Bloomberg Businessweek US

|

January 30, 2023

Families of those who died in two crashes are challenging the government's immunity deal

- Greg Farrell and Madlin Mekelburg

Boeing's 737 Max Can't Shake Its Past

Two years ago, Boeing Co. reached an agreement with the US Department of Justice to defer prosecution on one charge that it had deceived regulators about changes in its 737 Max flight control system that were linked to a pair of airline disasters.

The plane is flying again, and Boeing is raking in revenue from one of its most important programs.

But now families of the crash victims are taking the company to court in a move that could inflict new legal and financial pain.

At an arraignment scheduled for Jan. 26 in Fort Worth, the families of 10 victims who died in the 737 Max crashes were expected to tell the court about the anguish, pain and financial hardship they suffered as a result of Boeing's actions. Some were likely to express outrage that the DOJ let the company off with a pledge of immunity, aiming to get the judge to slap Boeing with stiffer penalties.

The hearing marks the first time a Boeing executive would have to enter a plea to the charge that the deferred prosecution agreement (DPA) let it avoid in 2021: conspiracy to defraud the United States. If Boeing pleads not guilty-as expected-it risks violating the terms of the earlier agreement, which forbade it from denying its role in hiding issues with the 737 Max flight control system from the Federal Aviation Administration. But a plea of "not guilty" also will spark anger among the victims' families, because the company has already admitted its behavior in its DPA with the Justice Department.

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