A federal judge in Fort Worth heard arguments Friday but withheld a ruling on whether he would accept a guilty plea by Boeing in connection to the tragic crashes of two 737 Max jets that resulted in the loss of 346 lives.
The proposed agreement would have Boeing plead guilty to conspiracy to defraud the federal government by deceiving regulators, which is a felony. But in tough questioning, U.S. District Judge Reed O’Connor pressed officials from the Justice Department, asking why he should accept a deal that would prevent him from imposing penalties beyond those already negotiated.
The plea agreement, reached in July between Boeing and the Justice Department, has ignited fierce debate.
Boeing has argued that the deal would allow it to have certainty in its future business dealings and would recognize the safety efforts the company has made since the crashes. The Justice Department has defended the decision, saying that it was most likely the best outcome it could get and that it made adjustments in the agreement to address the concerns of victims’ families.
But lawyers representing victims’ families have vehemently opposed the agreement, arguing that it falls short of holding Boeing — and particularly individual company executives — accountable for the tragedies.
A Lion Air flight crashed into the Java Sea, killing everyone on board, on Oct. 29, 2018, not long after Boeing’s newly developed 737 Max 8 started to be distributed to airlines. Another crash of a Boeing 737 Max 8, an Ethiopian Airlines flight on March 10, 2019, demonstrated some of the same failures. In addition to the tragic loss of life, the combined accidents proved catastrophic for Boeing, leading to a worldwide grounding of the jets, numerous lawsuits brought by victims’ families and a Justice Department criminal investigation.
Under the terms of the proposed agreement, Boeing would admit to conspiring to defraud the Federal Aviation Administration regarding crucial safety information related to the flight control software, called MCAS, implicated in the accidents. The deal entails a potential fine of up to about $487 million and mandates that the company invest at least $455 million in safety improvements during a three-year probationary period. However, provisions in the agreement could allow Boeing to reduce the fine by half, crediting it for previous payments made in connection with the case.
Paul G. Cassell, a lawyer who is representing the families, asked the judge to reject the plea deal and instead go to trial.
Mr. Cassell, in denouncing the agreement, said that it would allow Boeing to dictate its own penalties and failed to adequately reflect the gravity of the corporate misconduct that led to the crashes. He called for a more thorough examination of the matter.
“If there was ever a case where business as usual should not happen, this is the one, because we know what happened for the last three years on the Justice Department’s watch,” Mr. Cassell said. “We know that for the last three years, Boeing had a chance to get its house in order, and they failed to do so.”
About 20 members of victims’ families and a handful of aviation safety advocates were in attendance at the hearing.
The Justice Department has acknowledged the legal complexities involved in establishing a direct link between Boeing’s actions and the crashes. Yet, Sean Tonolli, senior deputy chief of the fraud section of the Justice Department’s criminal division, defended the plea as “fair and just.”
Mr. Tonolli argued during the hearing that the agreement promotes significant safety investments while avoiding a lengthy trial.
At the hearing, Boeing’s lawyers expressed remorse for the tragedies and reaffirmed the company’s commitment to enhancing safety protocols. They argued that accepting the current plea deal would be beneficial for the entire country.
“Boeing is a pillar of the American economy and national defense,” Ben Hatch, one of Boeing’s lawyers, said. He noted that the plea deal was a necessary step toward accountability and improved safety.
However, families of the victims remain unsatisfied with the proposed resolution, calling for criminal charges against Boeing executives. They continue to push for a public trial, claiming that it would uncover the extent of corporate negligence that led to the Lion Air and Ethiopian Airlines crashes.
The judge did not provide a timeline for when a decision would be made.
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