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The deal between the plane maker and the Justice Department, which was opposed by the families of those who died in the crashes, includes paying millions into a victims’ fund.
May 23, 2025, 3:55 p.m. ET
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 the Federal Aviation Administration and pay a fine, contribute to a fund for the families and invest in safety and quality programs.
The deal reverses another one 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. The judge overseeing the case asked the parties to revise the deal in December. Boeing’s admission that it obstructed the F.A.A. would not constitute a guilty plea under the new deal.
“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.
“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 many of the families, said in a statement on Friday. “My families will object and hope to convince the court to reject it.”
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. The company would also be fined $487 million, half of which it will receive credit for after an earlier fine payment.
A legal filing describing the deal in general terms did not include details about how the investments would be carried out. Boeing has already made investments 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.
Niraj Chokshi writes about aviation, rail and other transportation industries.
