Boeing settles with U.S. to avoid criminal trial over 737 MAX crashes
Boeing reached a preliminary settlement with the U.S. Department of Justice (DoJ) on May 23 to avoid criminal prosecution over the two fatal crashes involving 737 MAX aircraft – in Indonesia (2018) and Ethiopia (2019) – which killed 346 people.
Under the agreement, Boeing will pay more than $1.1 billion, covering a criminal fine of $487.2 million (with a $243.6 million credit from a previous 2021 agreement), $444.5 million in additional compensation to victims’ families, and $455 million to enhance its internal compliance, safety, and quality control systems.
In exchange, the Justice Department will drop fraud charges, sparing Boeing from a criminal conviction that could jeopardize its ability to secure U.S. government contracts, including with the Department of Defense and NASA.
The deal follows renewed scrutiny of Boeing after a 737 MAX 9 operated by Alaska Airlines suffered a serious safety incident in 2024, reigniting concerns about the company’s practices and prior commitments. The settlement still requires approval from a federal judge.
Backlash and legal review
The settlement has sparked backlash from lawmakers and families of the crash victims, some of whom argue the deal lets Boeing off the hook. Legal representatives for several families plan to challenge the deal in court.
The agreement is still subject to approval by a federal judge. Boeing, meanwhile, stated it remains committed to safety, accountability, and restoring trust through strengthened internal oversight.
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