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Home » DOJ Mulls Deal to Drop Fraud Charges Against Boeing

DOJ Mulls Deal to Drop Fraud Charges Against Boeing

THE BOEING COMPANY LOGO CAN BE SEEN ON THE WALL OF A BUILDING WITH A BLUE SKY IN THE BACKGROUND.
Photo: iStock /sanfel
May 19, 2025
SupplyChainBrain

The U.S. Justice Department (DOJ) is considering a deal to drop its criminal prosecution of Boeing, ahead of a June trial over allegations that the planemaker misrepresented a key system in its 737 Max to federal regulators. 

In a May 17 status report, the DOJ said that it met for two hours the day prior with the families of the victims from two deadly 737 Max crashes to discuss the framework for a potential "pretrial resolution." The resolution would dismiss the criminal fraud charge against Boeing before the trial begins in federal court in Texas on June 23, and require the planemaker to pay additional fines. The DOJ also noted that it has not decided on whether to move forward with the deal or to proceed to trial.

After conferring with the DOJ, the families said that they would prefer to go to trial, with a lawyer for the families telling the Associated Press that dismissing the case would "dishonor the memories" of the victims killed in the two crashes. Boeing stands accused of misleading the Federal Aviation Administration (FAA) about a new software system installed in its 737 Max that could point the nose of the plane downward without input from pilots. The FAA later determined that a faulty reading from the system was what caused both crashes in 2018 and 2019 respectively, killing 346 people. 

Boeing initially avoided prosecution when it reached a $2.5 billion settlement with the DOJ in 2021, which included guarantees from the planemaker that it would make sweeping changes to its safety standards and regulatory compliance. In May 2024, the DOJ ruled that Boeing had violated the terms of that deal as part of the fallout from a blown door plug aboard a 737 Max 9 in January.

The DOJ offered Boeing a new deal to settle the fraud charges in June 2024, where the company would have been allowed to plead guilty and pay a $487.2 million fine. That deal was rejected by a federal judge in March 2025, who cited concerns over how diversity, equity and inclusion policies might factor into picking a federal monitor to ensure Boeing would comply with the agreement. Unlike the initial deal proposed by the DOJ in 2024, the new pretrial resolution that's now under consideration wouldn't require Boeing to plead guilty. 

The DOJ will be accepting written submissions for the proposed resolution from family members through May 22, with plans to notify the judge overseeing the case about its decision some time after that.

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