- The Justice Department is dropping its criminal case against Boeing.
- It’s a major win for the embattled planemaker.
- The case stems from two Boeing 737 Max crashes that killed 346 people in 2018 and 2019.
The Justice Department on Friday said it had reached a deal with Boeing that would allow the planemaker to avoid criminal charges stemming from two 737 Max crashes that killed 346 people and upended the planemaker’s business for years.
Boeing will instead invest more than $1 billion in strengthening its compliance, safety, and quality programs in exchange for the Justice Department dropping the case. The deal is not yet finalized and will be submitted to the court soon, the department said in a court filing.
Crucially, the lack of being labeled as a felon could help it continue winning lucrative defense contracts without a waiver from the Pentagon.
Boeing declined to comment.
Boeing originally agreed to plead guilty to conspiracy to defraud the Federal Aviation Administration and pay a $243.6 million fine, but that deal was thrown out by the judge in December. A jury trial was scheduled to begin in June.
The families of some victims have long opposed any outcome that did not result in a trial.
“This isn’t justice. It’s a backroom deal dressed up as a legal proceeding, and it sends a dangerous message: in America, the rich and powerful can buy their way out of accountability,” the victims said via a lawyer when reports first surfaced earlier in May that a deal was in the works.
It’s yet another piece of good news for the beleaguered planemaker following the 737 Max crashes, a midair door-plug blowout, and other quality control headaches that have plagued its production line in recent years. In 2025, the company won a lucrative defense contract for the F-47 fighter plane and has seen an influx of orders for its 787 Dreamliner and yet-to-be-certified 777X.
Shares are up more than 17% year-to-date, outpacing the broader market.
