Families of those killed in two deadly Boeing (BA.N), opens new tab 737 MAX crashes have requested the Justice Department to pursue criminal charges and a fine of up to $24.78 billion against the manufacturer on Wednesday.
“A maximum fine of more than $24 billion is appropriate because Boeing’s crime is the deadliest corporate crime in American history.” Paul Cassel, an attorney representing fifteen families, submitted a letter to the Justice Department that was made public on Wednesday. The letter was “legally justified and clearly appropriate.”
According to the families, the Justice Department may withhold between $14 billion and $22 billion of the penalties “on the condition that Boeing devote those suspended funds to an independent corporate monitor and related improvements in compliance and safety.”
In May, the Department of Justice said that it had concluded that Boeing had broken a 2021 deferred prosecution agreement, which protected the firm from a criminal allegation of conspiracy to commit fraud stemming from 346 deadly crashes in 2018 and 2019.
Breaching Prosecution Agreement
Boeing informed the authorities last week that it had not broken the contract. Federal prosecutors in Texas have until July 7 to notify a federal judge of their intentions, which may include pursuing a criminal prosecution or working out a plea agreement with Boeing.
Two days before the 2021 agreement ended, on January 5, a panel blew off a new Alaska Airlines (ALK.N), opens new tab Boeing 737 MAX 9 jet. This led Justice Department authorities to conclude that Boeing had breached the deferred prosecution agreement.
The event revealed ongoing problems with Boeing’s quality and safety. The two catastrophic Boeing 737 MAX disasters that happened in Ethiopia and Indonesia in 2018 and 2019 resulted in a global 20-month grounding of the best-selling aircraft. Both deadly collisions were connected to a safety feature known as MCAS.
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