Boeing crash victims' families oppose plea deal as DOJ, aerospace giant ask court to approve it

Federal prosecutors in Texas have reached a tentative plea deal with Boeing that both sides are asking the court to accept despite vehement opposition from the families of hundreds of people who died in two MAX jet crashes, according to court filings.

Boeing agreed to the deal in July, but opposition from the victims' families and other entities has delayed the proceedings.

The criminal case against Boeing stems from two 737 MAX jet crashes in Indonesia and Ethiopia in 2018 and 2019, which left 346 people dead. The deal includes an admission that Boeing employees lied to the Federal Aviation Administration about flight control software that played a role in the crashes.

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Boeing's lawyers argued that representatives for the crash victims knew the terms of the deal before Justice Department lawyers offered it to the aerospace giant.

"There was, in short, nothing collusive or otherwise inappropriate about the way in which this arms-length negotiation was conducted," they wrote in a Wednesday filing. 

Federal prosecutors agreed, telling the court that they had collaborated with the victims' families and Boeing's customers throughout the case.

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"The bottom line is that senior Department leadership and career prosecutors have repeatedly and extensively consulted with the Families and Airline Entity Customers at the important junctures of the case, including to discuss the terms of a plea agreement," Sean Tonolli, the DOJ's senior deputy chief of the fraud section, wrote in a statement to the court. "Their voices have been heard, considered, and incorporated into the Government’s decision-making."

However, the deal, in which Boeing would plead guilty to a single count of conspiracy to defraud the government, minimizes the deaths of hundreds of people, according to lawyers for the victims' families.

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"In the proposed plea agreement, Boeing and the Government have agreed to allow Boeing to plead to one charge, conspiracy to defraud the Government, apparently hoping to avoid the obvious truth, that Boeing knowingly engaged in conduct which caused the death of 346 people," lawyers for the victims' families wrote in an earlier filing. "Presumably, it is the hope of Boeing and the Government that the Court will accept this fiction for purpose of favorably evaluating the plea agreement and the propriety of the proposed sentencing conditions. However, Boeing’s guilt has already been decided by this Court."

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The victims' lawyers pointed to a prior ruling in which the same court found that "without Boeing's fraud, the crashes would not have occurred."

"Corporate criminals like Boeing should not be permitted to escape the truth or the consequences of their actions, particularly in circumstances such as this case where the charged offense 'resulted in death…or involved a foreseeable risk of death,'" the victims' lawyers wrote.

In addition to stiffer fines and restitution, other proposals from the victims' lawyers include that Boeing create an escrow fund in case of future crashes.

Justice Department lawyers countered that they could not prove beyond a reasonable doubt that Boeing's fraud caused the planes to crash.

The deal would require Boeing to pay restitution to the victims' families as determined by the court, to invest $455 million in compliance and safety programs and to pay a criminal fine of $487.2 million – half of which has already been paid after Boeing breached the terms of a prior settlement. Boeing would also have to submit to an independent monitor. 

Former Boeing CEO Dave Calhoun announced he would be stepping down earlier this year as the company faces a growing number of legal and publicity struggles. Other executives and board members, including the head of the 737 MAX program, also said they would leave the firm.

Boeing did not immediately respond to a request for comment Thursday.

Fox News' Landon Mion contributed to this report.