Tentative Boeing Agreement Includes $1.1 Billion in Fines and Safety Measures

by Lawrence J. Tjan | May 26, 2025
Boeing 737 Max aircraft parked at an airport with the Boeing logo visible on the side. Photo Source: Reuters via bbc.com

Boeing Co. has reached a tentative agreement with the U.S. Justice Department, potentially allowing the aerospace giant to avoid criminal charges stemming from two fatal crashes of its 737 Max aircraft. The crashes, involving Lion Air Flight 610 in October 2018 and Ethiopian Airlines Flight 302 in March 2019, resulted in 346 deaths and raised significant questions about safety oversight and corporate accountability.

The settlement, detailed in a federal court filing on Friday, emerges just weeks before a criminal trial scheduled to start June 23 in Fort Worth, Texas. According to the agreement terms outlined by prosecutors, Boeing would pay over $1.1 billion, including a $243.6 million fine and $444.5 million to a fund supporting families of crash victims. An additional $455 million is earmarked to enhance the company's compliance, quality assurance, and safety measures.

U.S. District Judge Reed O’Connor, overseeing the case since 2021, must still approve this new settlement. Notably, Judge O'Connor previously rejected Boeing's attempt at a plea agreement last December. At the time, Boeing had agreed to plead guilty to criminal conspiracy, but the deal was dismissed due to O’Connor’s concerns regarding judicial oversight and the selection process for an independent monitor, citing inappropriate reliance on diversity, equity, and inclusion criteria.

The Justice Department, in presenting this latest agreement, emphasized extensive consultations with affected families, calling the resolution "the most just outcome with practical benefits." The deal notably requires Boeing's board members to personally meet with family members of those lost in the tragedies.

However, the proposed settlement faces vigorous opposition from some victims' relatives. In court filings, lawyers representing these families expressed strong objections, arguing the agreement grants Boeing undue leniency compared to standard prosecutorial practices. They maintain the dismissal would fail to hold the company fully accountable.

Catherine Berthet, whose daughter died in the Ethiopian Airlines crash, voiced profound disappointment, criticizing the agreement as evidence of corporate immunity from justice. "By deciding not to prosecute Boeing and not to take it to court, the government is sending a message to the public that big companies are above the law and justice, even when they kill," she stated.

Not all family members oppose the settlement. Prosecutors noted that over 100 victims' families either explicitly supported the settlement, did not oppose it, or sought a swift resolution to avoid a lengthy trial.

Boeing has declined to comment publicly on the agreement, and its stock saw minimal movement, dropping less than one percent following news of the deal.

This tentative agreement represents the latest development in a complicated legal history. In 2021, Boeing reached a deferred prosecution agreement related to misleading federal regulators about safety issues in the 737 Max's flight control system. This agreement was nearly concluded when, in early 2024, another serious incident involving the aircraft reignited scrutiny over Boeing’s manufacturing practices and compliance.

Following that incident, Boeing agreed to plead guilty and significantly bolster its safety oversight. However, Judge O’Connor's rejection of the December agreement set the stage for a trial that might now be avoided if this current settlement is approved.

The final details of the agreement are expected to be filed by the end of next week, pending Judge O'Connor's approval.

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Lawrence J. Tjan
Lawrence J. Tjan
Lawrence is an attorney with experience in corporate and general business law, complemented by a background in law practice management. His litigation expertise spans complex issues such as antitrust, bad faith, and medical malpractice. On the transactional side, Lawrence has handled buy-sell agreements, Reg D disclosures, and stock option plans, bringing a practical and informed approach to each matter. Lawrence is the founder and CEO of Law Commentary.