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Boeing, the aerospace giant, might face criminal charges as federal prosecutors have suggested to leaders at the Department of Justice, according to information obtained by CBS News. This development is part of an ongoing scrutiny into Boeing’s adherence to a deal made in 2021 to avoid prosecution. The specifics of the proposed charges remain undisclosed.
This news follows earlier actions by the Justice Department this year that flagged Boeing’s potential non-compliance with a deferred prosecution agreement linked to its handling of safety issues surrounding two fatal incidents involving its 737 Max aircraft in 2018 and 2019, among other concerns. The department has a deadline of July 7 to update a federal court on its intentions.
Both the Justice Department and Boeing chose not to comment on the matter.
Under the 2021 agreement, Boeing had committed to a $2.5 billion settlement, which included a commitment to overhaul its corporate conduct. In exchange, a charge of fraud conspiracy would be dismissed after a three-year period, provided Boeing met all conditions of the agreement.
However, as of May, prosecutors have indicated that Boeing did not meet its obligations under the agreement, failing to establish an effective compliance and ethics program as promised. Boeing countered in June, insisting it had honored the agreement.
Adding to Boeing’s challenges, incidents since the initial agreement have raised further safety concerns, including the door of an Alaska Airlines flight detaching mid-air in January. A whistleblower’s report in June suggested the use of substandard parts in Boeing’s jet production, highlighting potential risks to aircraft safety.
Boeing’s CEO, David Calhoun, acknowledged the company’s imperfections at a Senate hearing last week, emphasizing a commitment to a culture of transparency and accountability.
Reported by Kris Van Cleave and Kathryn Krupnik.