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Boeing Faces Potential Prosecution For Violating Corporate Probation

A sign marks an entrance to the Robert F. Kennedy Department of Justice Building in Washington, Jan. 23, 2023. The Justice Department's determination on Tuesday, May 14, 2024, that Boeing viola

The Justice Department recently announced that Boeing has violated the terms of its 2021 settlement, which allowed the company to avoid prosecution for its role in two fatal crashes involving the 737 Max jetliners. The crashes, which occurred in Indonesia in 2018 and Ethiopia in 2019, claimed the lives of 346 individuals.

Prosecutors found that Boeing had committed fraud against the United States by deceiving the Federal Aviation Administration (FAA) regarding a critical flight-control system implicated in the accidents. As part of the settlement, Boeing agreed to a deferred prosecution agreement and paid $2.5 billion to its airline customers.

However, Boeing's probationary period was jeopardized when a door plug on a new 737 Max blew out during an Alaska Airlines flight earlier this year. This incident led to renewed scrutiny of the company, with investigators discovering missing bolts during a subsequent inspection at a Boeing factory near Seattle.

Boeing now faces the possibility of prosecution as the Justice Department reviews the alleged violation of the settlement agreement. The company has until June 13 to respond formally to the accusations.

Despite the Justice Department's findings, Boeing maintains its innocence and asserts that it has complied with the terms of the agreement. The company has expressed readiness to address the Department's concerns and defend its position.

Family members of the crash victims are closely following the developments, with prosecutors scheduled to meet with them on May 31 to discuss Boeing's non-compliance with the settlement. The Justice Department has until July 7 to make a final decision on how to proceed with Boeing.

While the possibility of reviving criminal charges looms, the outcome remains uncertain. The Justice Department could opt to prosecute Boeing for any known crimes or seek to extend the probation period. Alternatively, they may choose to dismiss the charges altogether, effectively closing the case.

As the aviation industry watches closely, the fate of Boeing hangs in the balance as federal prosecutors weigh their next steps in this high-stakes legal saga.

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