Leeham News and Analysis
There's more to real news than a news release.
Leeham News and Analysis
- Department of Justice, Boeing OK to Non-Prosecution Agreement May 23, 2025
- Bjorn’s Corner: Air Transport’s route to 2050. Part 23. May 23, 2025
- Services are driving revenues and profits in difficult times, Part II May 22, 2025
- Boeing publicizes fourth Chief Aerospace Safety Officer Report May 21, 2025
- Boeing’s 2025 annual safety report due this month May 20, 2025
Department of Justice, Boeing OK to Non-Prosecution Agreement
May 23, 2025, (c) Leeham News: The US Department of Justice and Boeing okayed the framework of a Non-Prosecution Agreement to finally resolve the litigation dating to the 2018/19 737 MAX accidents and the Jan. 5, 2024, Alaska Airlines flight 1282 accident. The notice was filed today in the federal court of the Northern District of Texas.
Boeing agrees to pay a total of $1.1bn in fines, compensation and investments. Some of this was previously paid with a Deferred Prosecution Agreement reached in 2021; and some was agreed in a second DPA reached last December. The first DPA was essentially voided following the Flight 1282 accident and the second was rejected on procedural grounds by the judge in the Texas federal court.
The notice may be downloaded here: NPA Notice 5-23-25.
The full agreement should be filed next week, the DOJ said.
Family reaction
The DOJ said many families of the victims of the 2018 and 2019 crashes support the NPA. However, a law firm representing some families said they do not agree.
“Families who lost loved ones reacted with tremendous grief and even anger at the sudden turnaround in allowing Boeing to withdraw from its earlier guilty plea in a criminal fraud case announced by the Department of Justice (DOJ) late today,” Clifford Law said in a press release. “The DOJ said it does not intend to proceed with a criminal fraud trial against Boeing regarding two crashes of the 737 MAX8 aircraft six years ago killing 346 people. Many family members have repeatedly said that the DOJ is not working in the public interest in this matter.”
Pathetic. No accountability fro Boeing.
The deal isn’t yet a fact — it has to be approved by the court in Texas if it is to be enacted.
Central to this process will be whether the judge thinks that the deal does justice to the victims’ interests under the Crime Victims Rights Act.
If the judge rejects the deal, then trial will begin on June 23.
It is, however, worse than disgraceful that BA and the DOJ are behaving in such a gratuitous manner in complete disregard of the victims’ families sentiment.
Expect the Rubber Stamp.
I have very low expectations these days, in view of the ongoing degradation of rules-based administration at the other side of the pond.
That being said, Judge O’Connor has — up to now — shown great moral fiber, and a willingness to “shake the tree”. So, maybe we’ll get a surprise here.
I’d be very happy to be wrong, in this case.
Here’s a relevant citation from the pertinant Fifth Circuit Appeal Court ruling in this matter:
“With the above in mind, the logic of our court’s decision in In re Dean, is instructive and, in application here, determinative. As in Dean, the victims’ families “should have been notified of the ongoing [DPA] discussions and should have been allowed to communicate meaningfully with the government . . . before a deal was struck.” 527 F.3d at 395. That is particularly true if the deal, in ultimate outcome as approved by federal court, means no company, and no executive and no employee, ends up convicted of any crime, despite the Government and Boeing’s DPA agreement about criminal wrongdoing leading, the district court has found, to the deaths of 346 crash victims.”
“If a sought-for final stage is a Government motion to dismiss, we are confident, as in Dean, that the district court will assess the public interest according to caselaw as well as the CVRA, including violations already admitted to, as well as any other circumstances brought to its attention by the victims’ families. See United States v. Hamm, 659 F.2d 624, 629 (5th Cir. Unit A Oct. 1981) (en banc) (reiterating Supreme Court and prior Fifth Circuit precedent that district judges are empowered to deny dismissal when “clearly contrary to manifest public interest” as assessed “at the time of the decision to dismiss”) ….”
https://reason.com/volokh/2023/12/18/fifth-circuit-rules-that-victims-families-challenge-to-the-boeing-deferred-prosecution-agreement-is-premature/
Of course, they get away with a lot because American Government is a HUGE Failure of epic proportions. Greedy Company that hates women Veterans.
Before everyone pops an artery. Consider what the tobacco companies pay per lung cancer death. Ford paid for the Pinto. Or what is contemplated for opioid deaths. And then decide what scenario was more egregious. The settlement works out to $3.18M per victim. If you have an issue with rate that is offered then consider what the rest of industry pays. If not $3.18M then what is the right answer? Most victims families are not nearly as fortunate. You could put Boeing out of business, but they already have negative value. Is that really winning
Too big to fail…too big to be held accountable