The U.S. Justice Department has asked a federal judge to drop the criminal fraud charge against Boeing regarding the fatal 737 Max plane crashes in order to finalize a $1.1 billion settlement that would prevent the company from getting convicted of a crime.
The agreement which was announced last week includes $445 million in additional payments to victims’ families. Boeing which was accused of deceiving regulators about its best-selling jet will also have to comply with new oversight requirements as part of the deal.
The request to dismiss the case was filed in a Texas court on Thursday. Judge Reed O’Connor has asked lawyers to submit a briefing schedule by June 4 to determine whether to accept the settlement and cancel the trial which was set to begin soon.
The agreement was reached about five years after the crashes in Indonesia and Ethiopia which killed 346 people and led to worldwide criticism of Boeing’s safety culture and its relationship with the Federal Aviation Administration. Legal experts state that a criminal conviction avoidance will enable Boeing to maintain its federal contracts which are essential for its revenue stream.
The victims’ families have denounced the deal because they believe it does not provide sufficient accountability for Boeing. Federal prosecutors maintain that the settlement strikes a balance between pursuing justice and the economic consequences of penalizing a leading American defense contractor.
The company is currently working to overcome the scandal and stabilize its operations while the market for commercial aircraft remains volatile as Boeing waits for the judge to make a final decision.
