(New York) The US Department of Justice intends to offer Boeing a new deferred prosecution agreement (DPA), but with the appointment of an independent supervisor, deeming a trial too risky for the survival of the aircraft manufacturer, wrote Friday New York Times (NYT).
A ministry official nevertheless denied, to a civil party lawyer, having made a decision.
The New York daily, referring to sources close to the discussions, reported that after an “intense internal debate, senior department officials appear to have concluded that pursuing Boeing would be too legally risky.”
They “view the appointment of an independent supervisor as a quicker and more effective way to ensure” that Boeing improves its production and quality control processes, the newspaper continued.
The ministry warned in mid-May of a risk of criminal proceedings against the aircraft manufacturer for non-compliance with an agreement concluded on January 7, 2021 after the crash of two 737 MAX 8s, causing 346 deaths.
Boeing officially contested these conclusions in mid-June.
The ministry must now position itself. He undertook to make his decision known to the Texas federal judge in charge of this case no later than July 7.
Asked by AFP about the NYT information, Boeing and the families’ lawyers in the civil section did not react. The ministry declined to comment.
“This article is simply incorrect,” a department official told Paul Cassell, a law professor at the University of Utah and the families’ criminal lawyer, in an email that the latter relayed to media.
No decision
“The ministry has not made a decision on how to proceed or whether to pursue Boeing,” assured him Glenn Leon, head of the fraud section of the criminal service at the ministry, committing to inform him of “all major decisions” in this case.
“We hope that the ministry’s denial […] is not a ploy to buy time to reach another DPA with Boeing,” responded Mr. Cassell. “The first DPA failed. There is no reason to think that a second one would do better.”
“It is time to put an end to this matter by going to trial and securing a guilty verdict against Boeing,” he continued.
Accused of fraud in the certification process of the 737 MAX – its flagship plane – Boeing agreed in 2021 to pay $2.5 billion and committed, among other things, to strengthening its compliance program.
He provided for three years of probation.
But the aircraft manufacturer is increasing, especially since the beginning of 2023, production and quality control problems on three of its four commercial aircraft (737 MAX, 787 Dreamliner and 777).
The in-flight incident on an Alaska Airlines 737 MAX 9 on January 5, in which a cap door blocking a redundant emergency exit came loose, was too much.
Crucial for the American economy
Investigations have been opened by regulators, justice and parliamentary committees, some members of which are calling for prosecution.
Families of crash victims are also demanding a criminal trial against the group and its leaders, as well as a fine of nearly $25 billion.
Dave Calhoun, boss of Boeing since the beginning of 2020 and who must retire early by the end of the year because of the aircraft manufacturer’s problems, recognized Tuesday before a Senate inquiry committee the “seriousness” of the situation. He said progress had already been made.
But, according to the NYT, a criminal trial often results in the targeted company filing for bankruptcy. However, Boeing is a crucial group for the American economy and for national security.
According to the daily, a criminal conviction could exclude him from American government and military contracts.
Its Defense, Space and Security (BDS) branch generated almost $25 billion in 2023, or nearly a third of the group’s turnover.