Federal judge cancels Boeing trial over 737 crashes after agreement with DOJ
Boeing will pay $1.1 billion, will have fraud charges dismissed
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A federal judge has vacated the trial date related to Boeing and the crashes of its 737 MAX airplanes that left nearly 350 people dead.
U.S. District Judge Reed O'Connor granted the request of the airline and the Department of Justice (DOJ) on Monday, according to court documents obtained by FOX Business. The DOJ had filed a motion to dismiss the criminal fraud charge as part of a non-prosecution agreement.
The trial had been scheduled to begin on June 23 in Fort Worth, Texas.
O'Connor must still give final settlement approval and could reschedule a trial if he does not agree with the deal.
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Last week, Clifford Law Offices said in a news release that the DOJ sent a letter to families informing them the government agency had filed a motion to dismiss the criminal fraud matter against Boeing.
The Boeing 737 MAX aircraft is displayed at the Farnborough International Airshow, in Farnborough, Britain, July 20, 2022. (Peter Cziborra/File Photo / Reuters)
The DOJ sent the letter in accordance with the federal Crime Victims’ Rights Act.
The families were informed nearly a week after the DOJ said it had struck a tentative deal with Boeing that allows the company to avoid criminal prosecution for allegedly misleading regulators about the company’s 737 Max plane before two crashes that killed 346 people.
A logo is seen on the Boeing stand on the opening day of the Farnborough International Airshow 2024, south west of London, on July 22, 2024. (JUSTIN TALLIS/AFP via Getty Images / Getty Images)
Under the deal, Boeing will pay out $1.1 billion, including $445 million to a fund for the crash victims’ families, the DOJ said in court documents last week.
In exchange, the DOJ will dismiss a fraud charge against the aircraft manufacturer.
| Ticker | Security | Last | Change | Change % |
|---|---|---|---|---|
| BA | THE BOEING CO. | 214.51 | +11.92 | +5.88% |
"Boeing is committed to complying with its obligations under this resolution, which include a substantial additional fine and commitments to further institutional improvements and investments," Boeing said in a statement to FOX Business.
"The resolution also provides for substantial additional compensation for the families of those lost in the Lion Air Flight 610 and Ethiopian Airlines Flight 302 accidents. We are deeply sorry for their losses, and remain committed to honoring their loved ones’ memories by pressing forward with the broad and deep changes to our company that we have made to strengthen our safety system and culture."
The U.S. Department of Justice seal on a podium in Washington, D.C., on Thursday, Aug. 5, 2021. (Samuel Corum/Bloomberg via Getty Images / Getty Images)
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The government said the deal "secures meaningful accountability, delivers substantial and immediate public benefits, and brings finality to a difficult and complex case whose outcome would otherwise be uncertain."
Fox News Digital's Greg Wehner, Jake Gibson and Reuters contributed to this report.