Boeing accepts a plea deal to avoid a criminal trial over 737 Max crashes, Justice Department says

Boeing will plead guilty to a criminal fraud charge stemming from two crashes of 737 Max jetliners that killed 346 people, the Justice Department said late Sunday, after the government determined the company violated an agreement that had protected it from prosecution for more than three years.

Federal prosecutors gave Boeing the choice last week of entering a guilty plea and paying a fine as part of its sentence or facing a trial on the felony criminal charge of conspiracy to defraud the United States.

Prosecutors accused the American aerospace giant of deceiving regulators who approved the airplane and pilot-training requirements for it.

The plea deal, which still must receive the approval of a federal judge to take effect, calls for Boeing to pay an additional $243.6 million fine. That was the same amount it paid under the 2021 settlement that the Justice Department said the company breached. An independent monitor would be named to oversee Boeing's safety and quality procedures for three years. The deal also requires Boeing to invest at least $455 million in its compliance and safety programs.

The plea deal covers only wrongdoing by Boeing before the crashes in Indonesia and in Ethiopia, which killed all 346 passengers and crew members aboard two new Max jets. It does not give Boeing immunity for other incidents, including a panel that blew off a Max jetliner during an Alaska Airlines flight over Oregon in January, a Justice Department official said.

The deal also does not cover any current or former Boeing officials, only the corporation. In a statement, Boeing confirmed it had reached the deal with the Justice Department but had no further comment.

In a filing Sunday night, the Justice Department said it expected to submit the written plea agreement with a U.S. District Court in Texas by July 19. Lawyers for some of the relatives of those who died in the two crashes have said they will ask the judge to reject the agreement.

“This sweetheart deal fails to recognize that because of Boeing’s conspiracy, 346 people died. Through crafty lawyering between Boeing and DOJ, the deadly consequences of Boeing’s crime are being hidden,” said Paul Cassell, a lawyer for some of the families.

Federal prosecutors alleged Boeing committed conspiracy to defraud the government by misleading regulators about a flight-control system that was implicated in the crashes, which took place than less five months apart.

As part of the January 2021 settlement, the Justice Department said it would not prosecute Boeing on the charge if the company complied with certain conditions for three years. Prosecutors last month alleged Boeing had breached the terms of that agreement.

U.S. District Judge Reed O'Connor, who has overseen the case from the beginning, has criticized what he called “Boeing’s egregious criminal conduct.” O'Connor could accept the plea and the sentence that prosecutors offered with it or he could reject the agreement, likely leading to new negotiations between the Justice Department and Boeing.

The case goes back to the crashes in Indonesia and in Ethiopia. The Lion Air pilots in the first crash did not know about flight-control software that could push the nose of the plane down without their input. The pilots for Ethiopian Airlines knew about it but were unable to control the plane when the software activated based on information from a faulty sensor.

The Justice Department charged Boeing in 2021 with deceiving FAA regulators about the software, which did not exist in older 737s, and about how much training pilots would need to fly the plane safely. The department agreed not to prosecute Boeing at the time, however, if the company paid a $2.5 billion settlement, including the $243.6 million fine, and took steps to comply with anti-fraud laws for three years.

Boeing, which blamed two low-level employees for misleading the regulators, tried to put the crashes behind it. After grounding Max jets for 20 months, regulators let them fly again after the company reduced the power of the flight software. Max jets logged thousands of safe flights and orders from airlines picked up, increasing to about 750 in 2021, about 700 more in 2022 and nearly 1,000 in 2023.

That changed in January, when a panel covering an unused emergency exit blew off a Max during the Alaska Airlines flight over Oregon.

Pilots landed the 737 Max safely and no one was seriously injured, but the incident led to closer scrutiny of the company. The Justice Department opened a new investigation, the FBI told passengers on the Alaska plane that they might be victims of a crime and the FAA said it was stepping up oversight of Boeing.

A criminal conviction could jeopardize Boeing’s status as a federal contractor, according to some legal experts. The plea announced Sunday does not address that question, leaving it to each government agency whether to bar Boeing.

The Air Force cited “compelling national interest” in letting Boeing continue competing for contracts after the company paid a $615 million fine in 2006 to settle criminal and civil charges, including that it used information stolen from a rival to win a space-launch contract.

The company based in Arlington, Virginia, has 170,000 employees and dozens of airline customers spanning the globe. The best customers for the 737 Max include Southwest, United, American, Alaska, Ryanair and flydubai.

But 37% of its revenue last year came from U.S. government contracts. Most of it was defense work, including military sales that Washington arranged for other countries.

Boeing also makes a capsule for NASA. Two astronauts will remain at the International Space Station longer than expected while Boeing and NASA engineers troubleshoot problems with the propulsion system used to maneuver the capsule.

Even some Boeing critics have worried about crippling a key defense contractor.

“We want Boeing to succeed,” Richard Blumenthal, a Connecticut Democrat, said during a Senate hearing last month on what he termed the company’s broken safety culture. “Boeing needs to succeed for the sake of the jobs it provides, for the sake of local economies it supports, for the sake of the American traveling public, for the sake of our military.”

Relatives of the Max crash victims have pushed for a criminal trial that might illuminate what people inside Boeing knew about deceiving the FAA. They also want the Justice Department to prosecute top Boeing officials, not just the company.

“Boeing has paid fines many a time, and it doesn’t seem to make any change,” said Ike Riffel of Redding, California, whose sons Melvin and Bennett died in the Ethiopian Airlines crash. “When people start going to prison, that’s when you are going to see a change.”

At a recent Senate hearing, Boeing CEO David Calhoun defended the company’s safety record after turning and apologizing to Max crash victims’ relatives seated in the rows behind him “for the grief that we have caused.”

Hours before the hearing, the Senate investigations subcommittee released a 204-page report with new allegations from a whistleblower who said he worried that defective parts could be going into 737s. The whistleblower was the latest in a string of current and former Boeing employees who have raised safety concerns about the company and claimed they faced retaliation as a result.

Koenig reported from Dallas. Richer reported from Boston.

File - A door plug area of an Alaska Airlines Boeing 737 Max 9 aircraft awaiting inspection is pictured with paneling removed at the airline's facilities at Seattle-Tacoma International Airport on Jan. 10, 2024, in SeaTac, Wash. On Sunday, July 7, 2024, the Justice Department said Boeing has agreed to plead guilty to a criminal fraud charge stemming from two deadly crashes of 737 Max jetliners. (AP Photo/Lindsey Wasson, File)

FILE - Clariss Moore, parent of Danielle, one of the crash victims of a Boeing 737 Max 8 in Ethiopia, holds her photograph while speaking at a news conference on Capitol Hill, June 18, 2024, in Washington. On Sunday, July 7, 2024, the Justice Department said Boeing has agreed to plead guilty to a criminal fraud charge stemming from two deadly crashes of 737 Max jetliners. ( AP Photo/Jose Luis Magana, File)

FILE - With protesters in the audience, Boeing CEO Dave Calhoun waits to testify before the Senate Homeland Security and Governmental Affairs Subcommittee on Investigations at the Capitol in Washington, Tuesday, June 18, 2024. On Sunday, July 7, 2024, the Justice Department said Boeing has agreed to plead guilty to a criminal fraud charge stemming from two deadly crashes of 737 Max jetliners.(AP Photo/J. Scott Applewhite, File)

FILE - A Boeing 737 Max jet, piloted by Federal Aviation Administration (FAA) chief Steve Dickson, prepares to land at Boeing Field following a test flight on Sept. 30, 2020 in Seattle. On Sunday, July 7, 2024, the Justice Department said Boeing has agreed to plead guilty to a criminal fraud charge stemming from two deadly crashes of 737 Max jetliners. (AP Photo/Elaine Thompson, File)

FILE - Officials inspect an engine recovered from the crashed Lion Air jet in Jakarta, Indonesia, Nov. 4, 2018. The brand new Boeing 737 MAX 8 jet plunged into the Java Sea just minutes after takeoff from Jakarta early on Oct. 29, killing all of its passengers on board. On Sunday, July 7, 2024, the Justice Department said Boeing has agreed to plead guilty to a criminal fraud charge stemming from two deadly crashes of 737 Max jetliners. (AP Photo/Achmad Ibrahim, File)

FILE - Workers collect debris on March 12, 2019 at the scene where an Ethiopian Airlines Boeing 737 Max 8 crashed shortly after takeoff, killing all 157 on board, near Bishoftu, or Debre Zeit, south of Addis Ababa, in Ethiopia. On Sunday, July 7, 2024, the Justice Department said Boeing has agreed to plead guilty to a criminal fraud charge stemming from two deadly crashes of 737 Max jetliners. (AP Photo/Mulugeta Ayene, File)

FILE - Rescuers work at the scene of an Ethiopian Airlines Boeing Max crash near Bishoftu, or Debre Zeit, south of Addis Ababa, Ethiopia, on March 11, 2019. Ike Riffel , a California father whose two sons died in the crash, fears that instead of putting Boeing on trial, the government will offer the company another shot at corporate probation through a legal document called a deferred prosecution agreement, or DPA. (AP Photo/Mulugeta Ayene, File)

FILE - An airplane flies over a sign on Boeing's newly expanded 737 delivery center, Oct. 19, 2015, at Boeing Field in Seattle. The U.S. Justice Department plans to propose that Boeing plead guilty to fraud in connection with two deadly plane crashes involving its 737 Max jetliners, according to two people who heard federal prosecutors detail the offer Sunday, June 30, 2024. (AP Photo/Ted S. Warren, File)

A Boeing 737 MAX aircraft is shown on the assembly line during a brief media tour at the Boeing facility in Renton, Wash., Tuesday, June 25, 2024. (Jennifer Buchanan/The Seattle Times via AP, Pool)

FILE - With protesters in the audience, Boeing CEO Dave Calhoun arrives at a Senate subcommittee hearing to answer to lawmakers about troubles at the aircraft manufacturer. Ike Riffel , a California father whose two sons, died in 2019 when a Boeing 737 Max jetliner crashed in Ethiopia, fears that instead of putting Boeing on trial, the government will offer the company another shot at corporate probation through a legal document called a deferred prosecution agreement, or DPA. (AP Photo/J. Scott Applewhite, File)

An Israeli airstrike hit a mosque in central Gaza and Palestinian officials said at least 19 people were killed early Sunday. Israeli planes also lit up the skyline across the southern suburbs of Beirut, striking what the military said were Hezbollah targets.

The strike in Gaza hit a mosque where displaced people were sheltering near the main hospital in the central town of Deir al-Balah. Another four people were killed in a strike on a school sheltering displaced people near the town.

The Israeli military said both strikes targeted militants, without providing evidence.

An Associated Press journalist counted the bodies at the Al-Aqsa Martyrs Hospital morgue. Hospital records showed that the dead from the strike on the mosque were all men, while another man was wounded.

In Beirut, the strikes reportedly targeted a building near a road leading to Lebanon’s only international airport and another formerly used by the Hezbollah-run broadcaster Al-Manar.

Israel and Hezbollah have traded fire across the Lebanon border almost daily since the day after Hamas’ cross-border attack on Oct. 7, 2023, which killed 1,200 Israelis and took 250 others hostage. Israel declared war on the Hamas militant group in the Gaza Strip in response. As the Israel-Hamas war reaches the one-year mark, nearly 42,000 Palestinians have been killed in the territory, and just over half the dead have been women and children, according to local health officials.

Nearly 2,000 people have been killed in Lebanon in the latest conflict, most of them since Sept. 23, according to the Lebanese Health Ministry.

Here is the latest:

BEIRUT — The southern suburbs of Beirut were hit by more than 30 strikes overnight, the heaviest bombardment since Sept. 23, when Israel began a significant escalation in its air campaign against Hezbollah in Lebanon, Lebanon’s state-run National News Agency reported Sunday.

The targets included a gas station on the main highway leading to the Beirut airport and a warehouse for medical supplies, the agency said.

Some of the overnight strikes set off a long series of explosions, suggesting that ammunition stores may have been hit.

PARIS — French President Emmanuel Macron called for “a halt to arms exports for use in Gaza,” saying it's urgent to avoid escalating tensions in the region, his office said.

Macron drew strong criticism from Israel’s Prime Minister Benjamin Netanyahu by saying "the priority is … that we stop delivering weapons to fight in Gaza.” He made the comments in an interview with France Inter radio, which was recorded on Tuesday and aired Saturday.

France doesn’t deliver any weapons to Israel, Macron said.

Netanyahu released a video statement in which he called out the French president by name and referred to such calls as a “disgrace.”

In a statement, Macron’s office said “France is Israel’s unfailing friend. Mr. Netanyahu’s words are excessive and irrelevant to the friendship between France and Israel.”

“We must return to diplomatic solutions,” it added.

The statement also said that Macron had demonstrated his commitment to Israel's security when France mobilized its military resources in response to the Iranian attack. French authorities did not provided details about France’s role.

Macron has called for an immediate cease-fire in both Gaza and Lebanon.

DEIR AL-BALAH, Gaza Strip — An apparent Israeli airstrike early Sunday killed at least 18 people in central Gaza, Palestinian medical officials said.

The strike hit a mosque sheltering displaced people near the al-Aqsa Martyrs hospital in the town of Deir al-Balah, the hospital said in a statement.

An Associated Press journalist counted the bodies at the hospital morgue. Hospital records showed that the dead were all men. Another two men were critically wounded, the hospital said.

The Israeli military did not immediately comment about the strike on the mosque.

The latest strikes add to the mounting Palestinian death toll in Gaza, which is now nearing 42,000 according to the Palestinian Health Ministry. The ministry does not differentiate between civilian and militant deaths, but many of the dead were women and children.

BEIRUT — Powerful new explosions rocked Beirut’s southern suburbs late Saturday as Israel expanded its bombardment in Lebanon, also striking a Palestinian refugee camp deep in the north for the first time as it targeted both Hezbollah and Hamas fighters.

Thousands of people in Lebanon, including Palestinian refugees, continued to flee the widening conflict in the region, while rallies were held around the world marking the approaching anniversary of the start of the war in Gaza.

The strong explosions began near midnight after Israel’s military urged residents to evacuate areas in Beirut’s Haret Hreik and Choueifat neighborhoods. AP video showed the blasts illuminating the densely populated southern suburbs, where Hezbollah has a strong presence. They followed a day of sporadic strikes and the nearly continuous buzz of reconnaissance drones.

Israel’s military confirmed it was striking targets near Beirut and said about 30 projectiles had crossed from Lebanon into Israeli territory.

A man checks the site of an Israeli airstrike in Dahiyeh, Beirut, Lebanon, Sunday, Oct. 6, 2024. (AP Photo/Bilal Hussein)

Emergency workers inspect a building that was hit in an Israeli airstrike in Dahiyeh, Beirut, Lebanon, Sunday, Oct. 6, 2024. (AP Photo/Bilal Hussein)

Israeli soldiers pray at a staging area in northern Israel, Sunday, Oct. 6, 2024. (AP Photo/Baz Ratner)

An Israeli soldier prays at a staging area in northern Israel, Sunday, Oct. 6, 2024. (AP Photo/Baz Ratner)

People check the site of an Israeli airstrike in Dahiyeh, Beirut, Lebanon, Sunday, Oct. 6, 2024. (AP Photo/Bilal Hussein)

Smoke rises from a destroyed building at the site of an Israeli airstrike in Dahiyeh, Beirut, Lebanon, Sunday, Oct. 6, 2024. (AP Photo/Bilal Hussein)

Mourners gather around the bodies of Palestinian men who were killed in an Israeli airstrike in Deir al-Balah, Gaza, Sunday, Oct. 6, 2024. (AP Photo/Abdel Kareem Hana)