The US Justice Department has formally moved to dismiss a criminal fraud charge against Boeing and has asked a judge to cancel an upcoming trial related to two plane crashes that killed 346 people in Indonesia and Ethiopia.
The dismissal of the case against Boeing follows an agreement in principle that will require the company to pay and invest more than $11 billion, including an additional $445 million for the crash victims’ families.
The big picture: Avoiding the criminal prosecution will enable Boeing to sidestep a possible criminal conviction that could have impacted the company’s federal contractor status.
- U.S. District Judge Reed O’Connor in Fort Worth, Texas, will ultimately decide whether to accept the motion to dismiss, the terms of the non-prosecution agreement, and whether to cancel the trial.
- Boeing has stated its commitment to complying with the terms of the resolution, including making institutional improvements, investments, and providing additional compensation to the crash victims’ families.
Driving the news: The controversy surrounding Boeing stems from allegations of misleading the Federal Aviation Administration by withholding information about a software system that could impact the plane’s flight operations without pilot input.
- The crashes involving Boeing’s Max planes were linked to a sensor malfunction that led to the planes nosediving, causing difficulties for the pilots in regaining control.
