US Judge Sets Boeing 737 MAX Fraud Trial For June 23 As Reports Say Manufacturer Looking To Withdraw Plea Deal

Earlier in July, Boeing consented to plead guilty to a criminal fraud conspiracy charge following two fatal 737 MAX crashes and pay a fine of up to $487.2 million.

A US judge scheduled a trial date for Boeing in the Justice Department’s criminal fraud case, abruptly setting proceedings to begin on June 23. The case stems from allegations that Boeing misled the US regulators about a critical system on its 737 MAX aircraft. The decision was announced on Tuesday, altering the previously established timeline for negotiations.

Earlier in July, Boeing consented to plead guilty to a criminal fraud conspiracy charge following two fatal 737 MAX crashes. As part of the deal, the aerospace giant agreed to pay a fine of up to $487.2 million, reported Reuters.

However, US District Judge Reed O’Connor earlier dismissed that agreement, citing concerns over a diversity and inclusion clause. He had granted Boeing and the Justice Department (DOJ) until April 11 to renegotiate a plea deal, a deadline that now appears to have been rescinded.

Plea Deal Uncertainty and Legal Challenges

Uncertainty surrounding Boeing’s plea deal has intensified. The Wall Street Journal recently reported that the company is looking to withdraw from the existing agreement. Judge O’Connor did not specify why he advanced the trial date or why the previous deadline for renegotiations was removed.

Boeing confirmed on Tuesday that it remains in discussions with the DOJ, stating that both parties continue to work toward a resolution. The Justice Department has not provided any immediate comment on the development.

The plea deal initially agreed upon in 2023 included significant commitments from Boeing, such as a $455 million investment in safety and compliance improvements over a three-year, court-supervised probation period. It also required oversight by an independent monitor.

However, families of the victims of the 2018 and 2019 crashes, which resulted in 346 deaths, have vocally criticised the agreement. They labelled it a “sweetheart” deal that failed to hold Boeing accountable for the tragic incidents.

Push for Full Prosecution

Legal representatives for the victims’ families have urged the DOJ to abandon further plea discussions and proceed with a full prosecution. Erin Applebaum, an attorney representing 34 families affected by the 2019 Ethiopian Airlines crash, stated, “The families deserve their day in court, and this opportunity for justice must not be squandered.” She called on the DOJ to “stand on the right side of history” and reject any renewed plea negotiations.

If a guilty plea were to be accepted, Boeing would be officially designated as a convicted felon. The charge relates to its alleged conspiracy to deceive the Federal Aviation Administration about a software issue impacting the 737 MAX’s flight control systems.

The DOJ previously determined in May 2024 that Boeing violated a 2021 deferred prosecution agreement, which shielded it from legal consequences for the crashes. That assessment led prosecutors to formally charge Boeing and propose the current plea arrangement.

This latest legal development comes in the wake of additional safety concerns surrounding Boeing. A January 5, 2024, incident involving an Alaska Airlines jet, where a door panel blew out mid-flight, reignited scrutiny over the company’s safety and quality standards. Some officials from the Trump administration have urged regulators to adopt a tougher stance toward Boeing, emphasising the need for stronger oversight in the aviation industry.

“We need to be tougher on Boeing. We need to be tougher on the industry,” said Steve Bradbury, who was confirmed as deputy transportation secretary this month.