Last month, the DOJ told the judge in the case that it would make its decision by July 7.
New York:
The U.S. Department of Justice is considering a deal with Boeing that would avoid criminal charges against the aerospace giant but could appoint a federal overseer to oversee the company’s progress on safety improvements, The New York Times reported Friday.
People familiar with the discussions told the daily that the terms of the possible alternative agreement, known as a deferred prosecution agreement, or DPA, are still subject to change.
A DOJ official involved in the case, Glenn Leon, chief of the criminal division’s fraud section, said in an email to a civil lawyer seen by AFP that the department “has not made a decision” on the path it will take regarding Boeing.
The DOJ is determining its next steps after concluding in May that Boeing could be sued for violating a criminal settlement following two fatal 737 MAX crashes in 2018 and 2019 that claimed 346 lives.
But the Times, citing sources familiar with the discussions, reported that after substantial internal debate, justice officials “appear to have concluded that prosecuting Boeing would be too legally risky.”
Officials also believe that appointing a watchdog would be “a faster and more efficient way” of ensuring improvements are made to safety and quality control, the newspaper said.
Last month, the DOJ told the judge in the case that it would make its decision by July 7.
The DOJ’s Leon emailed Paul Cassell, an attorney for families in the criminal case against Boeing, saying the Times report was “simply not correct.”
Boeing did not respond to AFP’s requests for reaction.
– No decision –
The troubled planemaker disputed the department’s findings in mid-June, but acknowledged the severity of the safety crisis and CEO Dave Calhoun told Congress that Boeing is “taking action and making progress.”
In January 2021, the Court announced an initial DPA in which Boeing agreed to pay US$2.5 billion to settle allegations of fraud in the certification of the 737 MAX.
But since the start of 2023, the manufacturer has faced multiple production and quality control issues on its commercial aircraft, as well as in-flight incidents, including in January when a door connection panel flew off an Alaska 737 Max 9. Airlines.
The DOJ says Boeing’s violation of several provisions of the initial agreement, including measures requiring it to strengthen its internal controls to detect and prevent fraud, exposed the company to lawsuits.
The victims’ families have called for criminal prosecution of Boeing and its executives and are asking for a fine of almost 25 billion dollars.
A new DPA would allow the US government to resolve Boeing’s violations without trial.
This could serve as a victory of sorts for Boeing, a company considered critical to the U.S. aviation industry as well as national security.
Cassell, the families’ attorney, warned against the possibility of reaching a deal to avoid trial.
“We hope the Department is not using its claim that it has not yet made a ‘final decision’ as a ploy to buy more time to reach a DPA agreement with Boeing,” Cassell said in a statement.
“The first DPA settlement failed. There is no reason to think a second would be better,” he said, adding that it is time to “move forward with a trial and obtain a guilty verdict against Boeing.”
In the past, such lawsuits have forced companies to file for bankruptcy, the Times reported, and a conviction could potentially bar Boeing from receiving government contracts.
Boeing’s defense, space and security segment generated $25 billion in 2023, nearly a third of the company’s sales.
(Except the headline, this story has not been edited by NDTV staff and is published from a syndicated feed.)
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