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Boeing Seeks to Withdraw Plea Deal Amid Upcoming Fraud Trial Scheduled for June

Credited from: REUTERS

Key points:

  • Boeing is seeking to withdraw its plea deal related to the 737 MAX crashes.
  • A U.S. judge has set a trial date for June 23 in the fraud case against Boeing.
  • Familial representatives of victims are urging the Justice Department to proceed with full prosecution.

Boeing is attempting to withdraw its guilty plea agreement with the U.S. Department of Justice (DOJ) concerning two catastrophic 737 MAX crashes. Reports inform that the company seeks more lenient treatment under the ongoing administration review.

The plea agreement originally implicated Boeing in misleading regulators, contributing to two tragic incidents which claimed 346 lives in total—the crashes in Ethiopia and Indonesia occurred in March 2019 and October 2018, respectively. According to Reuters, Judge Reed O'Connor of the U.S. District Court recently set a trial date for June 23, emphasizing that this case is of significant gravity, referring to it as "the deadliest corporate crime in U.S. history."

Boeing's counsel had previously struck a deal involving a guilty plea to a fraud conspiracy charge, alongside a potential fine near $487.2 million. However, Judge O’Connor invalidated this agreement in December 2024, citing issues related to compliance monitoring provisions.

As of now, Boeing and the DOJ are reportedly “engaged in good faith discussions,” yet the Justice Department has received recommendations from family representatives of the crash victims, notably Erin Applebaum, who advocates for a complete prosecution and further accountability measures. She criticized the prior agreement as merely a “sweetheart deal,” lacking substantial restitution for the families affected.

Amidst the legal proceedings, Boeing faces significant scrutiny over its operational practices, particularly following a series of quality and safety issues, including a recent incident involving an Alaska Airlines jet in January 2024. Critics assert that regulatory measures must be stricter towards Boeing to prevent further corporate negligence. The sentiments echo the current sentiment among officials from the prior administration, emphasizing the need for a rigorous stance on compliance.

For more details, read the original report on The Jakarta Post or Al Jazeera.


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