Boeing 737 MAX crash families say planemaker should face much higher fine

By David Shepardson

WASHINGTON (Reuters) -Families for some of the 346 people killed in two fatal Boeing (NYSE:) 737 MAX crashes said on Wednesday a U.S. judge should reject the planemaker’s proposed plea deal with the Justice Department and the government should seek a much higher fine.

On July 24, the planemaker finalized an agreement to plead guilty to a criminal fraud conspiracy charge and pay up to $487 million after breaching a 2021 deferred prosecution agreement.

Paul Cassell, a lawyer for some of the families, said in a court filing the fine “is inadequate — or, at the very least, rests on misleading accounting and inaccurate accounting.” He added the fine “fails to reflect that Boeing’s crime killed 346 innocent victims.” Cassell called that decision “not only inaccurate—it is morally reprehensible.”

Adrian Vuckovich, another lawyer representing relatives, said in a separate filing “we suggest that Boeing should be required to pay a substantial fine which recognizes the value of each of the 346 people killed, the substantial harm to others and pay a fine which is consistent with fines paid by other corporate criminal defendants.”

The families cited O’Connor’s statement in a February 2023 ruling: “Boeing’s crime may properly be considered the deadliest corporate crime in U.S. history.”

Spokespeople for Boeing and the Justice Department did not immediately comment on the families’ filings.

The DOJ told Boeing earlier this month it could accept a settlement that branded the planemaker a felon or fight the charge in court. The Justice Department said in May that Boeing had breached its obligations in the agreement that shielded the planemaker from criminal prosecution stemming from misrepresentations about a key software feature tied to fatal 737 MAX crashes in 2018 and 2019 in Indonesia and Ethiopia.

The Justice Department has a separate criminal probe ongoing into the Alaska Airlines jet that was missing four key bolts.

As part of the guilty plea deal, Boeing agreed to pay the maximum fine of $487.2 million and the DOJ recommended the court credit its previous 2021 payment of $243.6 million against that, which was required by 2021 deal.

The deal also imposes an independent monitor, who will have to publicly file annual progress reports, to oversee the firm’s compliance. The company’s board — including new CEO — must meet with the victims’ families within four months of sentencing.