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July, 21

Judge Criticizes Boeing Deal in 737 MAX Lawsuit

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A U.S. federal judge greenlighted the Justice Department’s request to drop a criminal lawsuit against Boeing related to two fatal 737 MAX airplane accidents that resulted in the deaths of 346 individuals, including 18 Canadians. Judge Reed O’Connor, presiding over the case at the U.S. District Court in Fort Worth, Texas, expressed disagreement with the Justice Department’s decision to dismiss the case but indicated he lacked the authority to overturn it. He remarked that the government’s agreement with Boeing lacked the necessary measures to ensure public safety in air travel.

Boeing released a statement affirming its commitment to fulfill the terms of the agreement, emphasizing its dedication to enhancing safety, quality, and compliance protocols. In a hearing held in September, O’Connor scrutinized objections to the arrangement, particularly questioning the removal of a stipulation for Boeing to undergo oversight by an independent monitor and instead opt for a compliance consultant.

Before the hearing, Chris Moore, a resident of Toronto, criticized the non-prosecution agreement as an unjust deal. Moore’s daughter, Danielle, was among the Canadian victims of the Ethiopian Airlines crash in January 2019. The agreement faced backlash from families of crash victims who felt it favored the wealthy and powerful while disregarding the value of human life.

Judge O’Connor criticized the agreement, stating that Boeing’s actions warranted prosecution and that the company failed to rectify its misconduct adequately, leading to concerns about public safety. The government defended Boeing’s improvements and increased oversight by the Federal Aviation Administration. Both Boeing and the government argued that O’Connor had no option but to close the case.

Acknowledging Boeing’s past transgressions, O’Connor referred to the company’s conduct as possibly one of the most severe corporate crimes in U.S. history. The non-prosecution deal required Boeing to contribute an additional $444.5 million to a fund for crash victims, in addition to a $243.6 million fine and over $455 million to enhance the company’s compliance and safety programs.

Boeing has settled numerous wrongful death lawsuits, including with Canadian Paul Njoroge, who lost multiple family members in the Ethiopian crash. The terms of these settlements remain confidential. Legal proceedings are ongoing for the remaining unresolved cases, with a trial underway in Chicago to determine damages for the death of passenger Shikha Garg. The FAA proposed a fine of $3.1 million against Boeing for safety violations linked to the Alaska Airlines incident and for obstructing safety authorities’ independence.

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