US judge approves DOJ decision to drop Boeing criminal case | Courts News

The DOJ argued that the federal judge did not have the authority to make the decision.

A United States judge in Texas has approved the Department of Justice’s request to dismiss a criminal case against Boeing despite his objections to the decision.

On Thursday, Judge Reed O’Connor of the US District Court in Fort Worth dismissed the case, which will allow the plane maker to avoid prosecution over charges related to two deadly 737 MAX crashes: the 2018 Lion Air crash in Indonesia and the 2019 Ethiopian Airlines crash.

O’Connor said he disagreed with the Justice Department’s argument that ending the case served the public interest, noting that he lacked the authority to overrule it.

The government argued Boeing has improved, and the Federal Aviation Administration (FAA) is providing enhanced oversight. Boeing and the government argued O’Connor had no choice but to dismiss the case.

He said the deal with the aerospace giant “fails to secure the necessary accountability to ensure the safety of the flying public”.

In September, O’Connor held a three-hour hearing to consider objections to the deal, questioning the government’s decision to drop a requirement that Boeing face oversight from an independent monitor for three years and instead hire a compliance consultant.

O’Connor said the government’s position is “Boeing committed crimes sufficient to justify prosecution, failed to remedy its fraudulent behaviour on its own during the [deferred prosecution agreement], which justified a guilty plea and the imposition of an independent monitor, but now Boeing will remedy that dangerous culture by retaining a consultant of its own choosing”.

The DOJ first criminally charged Boeing for the crashes in January 2021, but also agreed to deferred prosecution in the case.

The plane maker was charged with one count of conspiracy to defraud the US. Courts found that Boeing deceived the FAA about what is called the manoeuvring characteristics augmentation system, which affects flight control systems on the aircraft.

“Boeing’s employees chose the path of profit over candor by concealing material information from the FAA concerning the operation of its 737 Max airplane and engaging in an effort to cover up their deception,” acting Assistant Attorney General David P Burns of the DOJ’s criminal division said in a statement at the time.

O’Connor said in 2023 that “Boeing’s crime may properly be considered the deadliest corporate crime in US history”.

Under the non-prosecution deal, Boeing agreed to pay an additional $444.5m into a crash victims’ fund to be divided evenly per victim of the two fatal 737 MAX crashes, on top of a new $243.6m fine and more than $455m to strengthen the company’s compliance, safety, and quality programmes.

On Wall Street, Boeing’s stock was up by 0.2 percent as of 11am in New York (16:00 GMT).