Boeing told US Justice Department it did not violate deal after 737 Max crashes, source says

NEW YORK - Boeing told the US Justice Department that it did not violate a deferred prosecution agreement (DPA) after fatal crashes involving the 737 Max, a source familiar with the matter told Reuters on June 12.

The US planemaker was responding to a

Justice Department determination in May

that Boeing violated a 2021 DPA. The DPA had shielded the company from a criminal charge arising from fatal crashes in 2018 and 2019 that killed 346 people.

“We’ll decline to comment on any specific communications with the Justice Department, however, we continue to engage transparently with the department, as we have throughout the term of the agreement,” a Boeing spokesperson told Reuters.

The Justice Department did not immediately respond to Reuters’ request for comment.

The Justice Department found in May that Boeing had failed to “design, implement, and enforce a compliance and ethics programme to prevent and detect violations of the US fraud laws throughout its operations”, according to a court filing.

However, Reuters earlier in June reported that Boeing executives are

unlikely to be criminally charged

over fatal crashes, as the statute of limitations has likely passed.

Prosecutors have until July 7 to inform a federal judge in Texas of their plans, which could include proceeding with a criminal case and negotiating a plea deal with Boeing, according to a person familiar with the matter, court filings and correspondence that Reuters reviewed. Short of a prosecution, the Justice Department could also extend the DPA a year.

Boeing had earlier said it believes it has “honoured the terms of the agreement” and looks forward to responding to the Justice Department. REUTERS