District Judge Reed O’Connor announced on Friday that he will hold a hearing on October 11 to consider objections raised by the families of victims from the two Boeing 737 MAX crashes regarding the planemaker’s agreement to plead guilty to criminal fraud conspiracy.
Boeing finalized an agreement on July 24 to plead guilty to conspiring to defraud the Federal Aviation Administration (FAA) and to pay up to $487 million in fines after violating a 2021 deferred prosecution agreement.
Family members of some of the 346 people who died in the 2018 and 2019 Boeing 737 MAX crashes argue that the penalty is insufficient and have raised additional concerns about the plea deal. Judge O’Connor will also review objections filed by LOT Polish Airlines, which claims it should have the same rights as victims’ families in the case. LOT stated that it suffered at least $250 million in damages from its ownership and lease of 14 Boeing 737 MAX aircraft when the model was grounded globally in March 2019 following the two crashes.
Neither Boeing nor the Justice Department immediately commented on O’Connor’s decision. However, in August, the Justice Department urged the judge in Fort Worth, Texas, to approve the deal, asserting that it represents “a strong and significant resolution that holds Boeing accountable and serves the public interest.”
Family members have cited O’Connor’s statement from a February 2023 ruling, where he referred to Boeing’s actions as “the deadliest corporate crime in U.S. history,” in calling for harsher penalties.
In its July announcement, the Justice Department said Boeing had allowed unsafe practices at its factories and failed to maintain accurate and complete records of critical airplane safety data, contributing to its violation of the 2021 agreement. This finding came after a January incident in which a panel on an Alaska Airlines 737 MAX blew out mid-flight, revealing continued safety and quality issues at Boeing, just two days before the 2021 agreement expired.
Under the plea deal, Boeing must spend $455 million over three years to improve its compliance, safety, and quality programs. The planemaker will also be subject to oversight from an independent monitor during this period. O’Connor may require Boeing to pay additional restitution, potentially providing further compensation to victims’ families beyond what has already been covered in settlements or the $500 million allocated to relatives as part of the 2021 agreement.
