Boeing reached a deal with the Justice Department on Friday that would spare the company from taking criminal responsibility for a pair of deadly 737 Max crashes in 2018 and 2019.
Under the deal, which was staunchly opposed by many families of the victims of the fatal crashes, Boeing would admit to obstructing federal oversight, pay a fine, contribute to a fund for the families and invest in safety and quality programs.
The deal represents the latest twist in a yearslong legal saga over the crashes, dating back to the final days of the first Trump administration. It reverses a different deal reached last summer, in which Boeing had agreed with the Justice Department under President Joseph R. Biden Jr. to plead guilty to a felony charge of conspiring to defraud the Federal Aviation Administration.
The judge overseeing the case had asked the parties to revise the deal in December, criticizing the process the agreement had laid out for the selection of an independent monitor who would make sure that Boeing was abiding by the deal. Boeing’s admission in the new agreement that it obstructed the F.A.A. would not constitute a guilty plea.
“Ultimately, in applying the facts, the law, and department policy, we are confident that this resolution is the most just outcome with practical benefits,” the Justice Department said in a statement. “Nothing will diminish the victims’ losses, but this resolution holds Boeing financially accountable, provides finality and compensation for the families and makes an impact for the safety of future air travelers.”
The Justice Department floated the possibility of such a deal in a call with the families of victims of the crashes last week, and their lawyers dismissed it as a miscarriage of justice. Boeing declined to comment on the new agreement, which would still need approval of the judge overseeing the case.
“This kind of non-prosecution deal is unprecedented and obviously wrong for the deadliest corporate crime in U.S. history,” Paul Cassell, a lawyer representing some of the families, said in a statement on Friday. “My families will object and hope to convince the court to reject it.”
In a legal filing on Friday, the Justice Department said that it had heard from family members and lawyers representing more than 110 of the victims who either supported the deal itself, supported the department’s efforts generally to reach an agreement before a June trial date or did not oppose the deal.
Under the deal, Boeing would be required to invest about $455 million in quality and safety programs, and pay about $445 million into a compensation fund for beneficiaries of the 346 people who died in the pair of crashes in Indonesia and Ethiopia in late 2018 and early 2019. The company would also be fined $487 million, half of which it will receive credit for after an earlier fine payment. The fine and investments were part of the deal reached last summer, while the compensation fund payments were not.
The legal filing describing the deal in general terms did not include details about how the investments would be carried out. Boeing has already invested in safety and quality programs since a panel blew off one of its planes mid-flight in January 2024, raising concerns about the quality of its planes.
Boeing would also agree to retain a “compliance consultant” who would issue recommendations to the company and report findings to the government. Companies are sometimes required to be overseen by federal monitors, for which there is a history of legal precedent, but Mr. Cassell raised questions about what powers a consultant would have.
The company’s board would also be required to meet with the families of the victims.
In a letter on Friday, Senators Elizabeth Warren of Massachusetts and Richard Blumenthal of Connecticut, both Democrats, urged the department not to reach a new deal.
“Any deal between D.O.J. and Boeing that would allow the company and its executives to avoid accountability would be a serious mistake,” they said.
Boeing has said previously that it has settled more than 90 percent of civil cases related to the crashes and paid out billions of dollars to the families and loved ones of victims and their lawyers.
Niraj Chokshi writes about aviation, rail and other transportation industries.
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