Boeing, the aerospace giant, is under investigation by the US Justice Department for allegedly breaching the terms of a 2021 settlement that allowed it to avoid criminal prosecution following two fatal crashes involving its 737 Max aircraft. The latest development comes after a door-plug panel blew off an Alaska Airlines Boeing 737 Max jetliner during a flight in January, and the FBI has informed passengers from the flight that they might be victims of a crime.
The Justice Department accused Boeing of failing to make changes to prevent it from violating federal anti-fraud laws, which was a condition of the 2021 settlement. The company reached this agreement after being charged with defrauding federal safety officials by not fully disclosing a new software system in the MAX planes, which was implicated in the crashes.
The Maneuvering Characteristics Augmentation System (MCAS) error caused two planes to nosedive shortly after takeoff, resulting in the deaths of 346 people. Boeing has until June 13 to respond to the Justice Department's allegations.
Boeing faced multiple investigations and massive damage to its business following the crashes in Indonesia and Ethiopia. The families of victims have criticized the delayed prosecution agreement, arguing it denied them justice for their loved ones' deaths.
The 2021 settlement required Boeing to pay a $2.5 billion fine, establish a $500 million fund for victim compensation, and nearly $1.8 billion to airlines whose MAX jets were grounded.
This is not the first time Boeing has faced scrutiny over safety issues. In 2018 and 2019, investigations pointed to a flight-control system that Boeing added to the Max without telling pilots or airlines. The company downplayed the significance of the system and did not overhaul it until after the second crash.
Boeing's breach of this settlement could result in criminal charges, potentially including fraud. The Justice Department is currently investigating Boeing for allegedly violating federal anti-fraud laws.
