Report of Justice Dept. decision on Boeing rattles MAX crash families

Lawyers representing families of those killed in two Boeing 737 MAX crashes were stunned Friday by media reports that the U.S. Justice Department was expected to let Boeing avoid criminal prosecution for violating a 2021 settlement.

The deferred prosecution agreement, which lawyers for victims’ families say was struck without their input, required Boeing to meet certain safety conditions for three years to avoid the possibility of a criminal conviction. The agreement expired in January, days after a panel blew off an in-flight Alaska Airlines plane and reignited scrutiny on the struggling aerospace giant.

Federal prosecutors in May said that Boeing had violated the agreement, opening up the possibility for Boeing to face a criminal conviction related to the crashes in Indonesia and Ethiopia that killed more than 300 people.

The New York Times on Friday reported on a potential Justice Department agreement with Boeing that would see the company avoid additional charges, citing “people familiar with the discussions.” A top DOJ official unequivocally rejected the claim later Friday, saying the department hadn’t made a decision on how to proceed or whether to pursue additional charges against Boeing, according to an email sent to attorneys for victims’ families obtained by The Seattle Times.

Since the May announcement, attorneys for the families and others who have watched the case closely have suggested DOJ may require more intense monitoring of Boeing. Some who lost loved ones in the crashes have urged prosecutors to bring additional charges against Boeing and seek a criminal conviction. Prosecutors have until July 7 to determine if Boeing breached additional terms of the agreement or if there was additional misconduct by Boeing.

The New York Times initially reported Friday that DOJ planned to offer Boeing another deferred prosecution agreement that didn’t include additional charges. The story was updated Friday afternoon to say that prosecutors hadn’t made a final call or ruled out bringing charges against Boeing.

Glenn Leon, chief of the fraud section of the DOJ’s criminal division, wrote in an email to lawyers for the MAX crash families that the reporting publicized by The New York Times was “simply not correct.” A New York Times spokesperson told Reuters that the media outlet is confident in the reporting’s accuracy.

The Justice Department declined to comment on the story, or on Leon’s email. Boeing didn’t respond to requests for comment Friday.

Attorney Sanjiv Singh saw the “pretty stunning” New York Times story Friday morning and immediately sent an email to Leon. Singh said he is demanding an investigation into how a leak may have occurred. Singh represents 16 families whose loved ones were killed in the Lion Air crash on Oct. 29, 2018, in Indonesia.

“This raises serious questions about the integrity of the DOJ’s deliberation process,” said Singh, who is based in California. “My hope is they will take serious steps into investigating how this happened.”

Singh said time hasn’t changed what his clients believe the department should do: “They absolutely should prosecute Boeing.”

Lawyers for the families noted that the first deferred prosecution agreement was made without consulting their clients. The Justice Department in recent weeks has held meetings with victims’ families.

Still, loved ones feel they aren’t being told about potential agreements or given updates, said Paul Cassell, who is representing 15 families of MAX crash victims.

“We seem to be getting leaks with Boeing and the Justice Department where the media has information, but 346 families aren’t being kept in the loop and not getting information about what is going on,” he said. “It’s just outrageous.”

Cassell wrote a letter to the Justice Department earlier this week arguing that Boeing should be fined $24.8 billion and be prosecuted “because Boeing’s crime is the deadliest corporate crime in U.S. history.”

In its May announcement that Boeing had violated the agreement, Justice Department officials specified several conditions that Boeing had agreed to but failed to meet related to how the company reviewed and strengthened its program for compliance with U.S. fraud laws.

Boeing has previously said it complied with the terms of the agreement.