Boeing has won a major legal battle after a federal judge allowed the dismissal of a criminal case linked to two deadly crashes involving its 737 Max airplanes. The company will pay $1.1 billion as part of a settlement with the U.S. Justice Department, avoiding a criminal charge that stemmed from the tragedies.
The crashes, involving Lion Air Flight 610 in 2018 and Ethiopian Airlines Flight 302 in 2019, killed 346 people. Both accidents were tied to problems with the plane’s flight control system. Prosecutors accused Boeing of conspiracy to obstruct the investigation by federal aviation regulators. Families of some victims pushed for tougher penalties and even called for a special prosecutor, but the deal moved forward despite their objections.
U.S. District Judge Reed O’Connor in Fort Worth, Texas, ruled on Thursday to dismiss the criminal case and approve the settlement. He admitted the agreement didn’t fully hold Boeing accountable for safety but said he had no power to reject it since the prosecutors acted properly. "Poor discretion may not be countered with judicial overreach," the judge said.
Under the settlement, Boeing admits to the underlying wrongdoing but doesn’t enter a guilty plea. The company will pay fines, compensate families directly through a new fund, and invest in improving safety and compliance. The total amount includes $487.2 million in criminal penalties (half of which was already paid), $444.5 million for a fund that benefits crash victims’ families, and $455 million aimed at enhancing Boeing’s safety and quality programs.
Boeing will also hire an independent consultant to oversee its efforts in anti-fraud and ethics compliance. This consultant will review Boeing’s internal programs and report back to the government with recommendations.
This agreement marks a turning point after years of legal struggles following the crashes. The case started in 2021 with Boeing paying fines for allegedly deceiving regulators. However, a recent incident in early 2024, where a large panel on a 737 Max blew out mid-flight, raised concerns about Boeing’s manufacturing controls and caused the government to push for a new charge.
Boeing had agreed to plead guilty and install a corporate monitor under a previous proposed deal, but Judge O’Connor rejected that plan in December 2024. He objected to how the independent monitor would be selected and wanted stronger oversight. The judge also set a criminal trial date for June 2025, which was then halted when the new settlement was announced.
While some relatives of the crash victims still oppose the deal and plan to ask a federal appeals court to review the decision, Boeing’s shares rose slightly after the news. The company’s CEO, Kelly Ortberg, who took the helm amid the crisis, said Boeing is committed to meeting its agreements and improving safety going forward.
This settlement closes a significant chapter in Boeing’s challenges caused by the 737 Max crashes but leaves many hoping the company will continue to raise its safety standards. The legal case is officially recorded as US v. Boeing in the U.S. District Court for the Northern District of Texas.