DOJ Notifies Boeing of Breach in Deferred Prosecution Agreement Over 737 MAX Scandal

The Department of Justice (DOJ) has informed aerospace giant Boeing that it has breached its deferred prosecution agreement (DPA) from 2021, which mandated compliance commitments following the well-publicized crashes of its 737 MAX aircraft.

In a letter issued on Tuesday, the DOJ notified Boeing that it had determined the company failed to fulfill its obligations under the DPA by neglecting to establish, implement, and enforce a compliance and ethics program aimed at preventing and detecting violations of U.S. fraud laws across its operations.

Addressed to U.S. District Court Judge Reed O'Connor for the Northern District of Texas, the letter provided an update on the status of the DPA, which Boeing entered into in January 2021 as part of a $2.5 billion settlement over criminal charges related to the 737 MAX scandal.

The DOJ accused Boeing of participating in a conspiracy to defraud the Federal Aviation Administration's Aircraft Evaluation Group during the evaluation of its 737 MAX, particularly with regard to technical pilots withholding material information about a critical component of the aircraft affecting its flight control system.

This omission resulted in crucial FAA documentation, including airplane manuals and training materials, lacking essential information, ultimately contributing to the crashes of Lion Air Flight 610 and Ethiopian Airlines Flight 302 in 2018 and 2019, respectively.

In January, an incident occurred involving Alaska Airlines Flight 1282, part of Boeing's 737-9 MAX fleet, which lost its door plug during flight.

Subsequently, in March, the FAA announced findings of multiple instances where Boeing had failed to adhere to manufacturing quality control requirements, including issues related to parts handling, storage, and product control. As a consequence, the FAA temporarily halted the expansion of production of the 737 MAX.

The DOJ has given Boeing until June 13 to provide an explanation of the alleged breach of the DPA and the actions taken to address and rectify the situation. The agency stated that Boeing's response will be taken into consideration in determining whether to pursue prosecution.

In response to the DOJ's notification, Boeing confirmed receipt and stated, "We believe that we have honored the terms of that agreement and look forward to the opportunity to respond to the department on this issue." The company pledged transparency in its engagement with the DOJ, as it has done throughout the duration of the agreement, including in response to inquiries following the Alaska Airlines Flight 1282 incident.

By fLEXI tEAM