Boeing Defends Compliance, Challenges Justice Department's Allegations
ICARO Media Group
In a recent development, Boeing has argued to the Justice Department that the company has fulfilled its obligations under a 2021 deferred prosecution agreement (DPA), according to sources familiar with the discussions. The aerospace giant has strongly denied allegations made by federal prosecutors last month claiming that Boeing had violated the agreement and risked prosecution.
The response from Boeing comes in the wake of prosecutors informing a federal judge in Texas in May that the company had breached the DPA. The agreement, if upheld by Boeing, would have resulted in the Justice Department dropping criminal charges related to the two tragic 737 Max crashes that took place in 2018 and 2019, claiming the lives of 346 individuals. Prosecutors argued that Boeing failed to establish adequate compliance measures, leading to their claim that the agreement had been violated.
Sources reveal that Boeing submitted its response on Wednesday, expressing its disagreement with the prosecutors' allegations. Details of the response were first reported by Bloomberg. The ongoing dispute is being overseen by a federal judge in Texas, with Boeing having until Thursday to formally counter the Justice Department's claims.
When approached for comment, the Justice Department declined to provide any further information on the matter, emphasizing that it is an ongoing legal process.
In January 2021, Boeing reached a settlement with the federal government in which the company agreed to pay a $2.5 billion settlement and adhere to certain conditions for a specified period. This agreement was set to expire in July, marking the end of a three-year term.
However, last month, federal prosecutors accused Boeing of breaching its obligations under the DPA. This alleged breach was based on Boeing's alleged failure to establish and enforce a compliance and ethics program aimed at preventing and detecting violations of U.S. fraud laws company-wide.
In January this year, an incident involving the cabin door of an Alaska Airlines Boeing 737-MAX 9 blowing out during takeoff from Portland, Oregon, raised concerns. It was confirmed that prosecutors were investigating whether this incident could impact the deferred prosecution agreement.
A spokesperson for Boeing, in a statement provided to CBS News, stated that the company would not comment on specific communications with the Justice Department. However, they stressed that Boeing has maintained transparent engagement with the department throughout the duration of the agreement.
The outcome of this ongoing dispute between Boeing and the Justice Department remains uncertain. The court proceedings and arguments put forth by both sides will ultimately determine the course of action and its consequences for the embattled aerospace giant.