Amid ongoing scrutiny, an attorney representing families of crash victims disclosed to Scripps News that the Department of Justice has proposed a plea deal to Boeing regarding federal fraud charges.
The DOJ asserts that safety lapses such as the door panel detachment on an Alaska Airlines flight violate a 2021 protection settlement between Boeing and the Department of Justice.
This settlement originated from the two fatal crashes involving 737 Max jets. Some relatives of the crash victims contend that criminal charges are long overdue.
Paul Cassell, the attorney for families impacted by Boeing crashes, stated, “Boeing has committed the deadliest corporate crime in U.S. history, resulting in the loss of 346 lives. Furthermore, Boeing has failed to fulfill its obligations to enhance its safety standards.”
Cassell wrote a letter to the DOJ urging prompt action.
“Boeing had been granted a three-year period to rectify its actions, but it has not done so. Therefore, it is imperative for criminal prosecution to proceed without delay,” Cassell emphasized.
Pursuing criminal charges against corporations is a complex endeavor that often culminates in a settlement or plea agreement.
For example, BP faced criminal accusations following the Deepwater Horizon oil spill and ended up paying $4 billion in penalties.
More recently, Norfolk Southern reached a $310 million settlement with the Justice Department regarding a train derailment in East Palestine, Ohio.
Former SEC attorney Marc Steinberg anticipates a similar outcome in this case.
Steinberg remarked, “It is inevitable for a settlement to be reached. Despite any opposition, they will have to come to an agreement.”
One aspect often absent in these cases, according to Steinberg, is individual accountability.
“Why target the company when the decisions are ultimately made by individuals? This is a pattern that both the Justice Department and the SEC have followed for years,” Steinberg noted.
Interestingly, executives involved in significant controversies like the BP oil spill, the 2008 financial crisis, and the opioid epidemic have managed to evade imprisonment thus far.
If the DOJ decides against pressing charges, many experts, including Steinberg, anticipate the appointment of an independent monitor to supervise reform efforts within the company.
