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Boeing receives plea deal offer to avoid 737 crash lawsuit

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A lawyer for victims’ families expressed outrage on Sunday, saying the US Justice Department is offering Boeing a plea agreement that would let it avoid prosecution related to two deadly 737 Max crashes.

Details of the deal, which would require Boeing to pay fines and appear before an outside monitor, were given to the families in a two-hour presentation by the Department of Justice (DOJ) on Sunday, said Paul Cassel, a University of Utah law professor representing the families.

He said the families would “strongly object” if Boeing ultimately accepts the settlement and it is presented to a judge.

Boeing declined to comment when contacted by AFP.

The New York Times reported a week ago that prosecutors were considering an alternative deal, known as a deferred prosecution agreement, or DPA, but the DOJ said it had not yet made a decision.

In May, the Justice Department concluded that Boeing could be sued for violating a previous DPA following two fatal 737 Max crashes in 2018 and 2019 that killed 346 people.

Under that three-year deal, Boeing agreed to pay $2.5 billion to settle fraud allegations related to the certification of the 737 Max.

But the aviation giant came under fresh scrutiny earlier this year when a 737 Max aircraft operated by Alaska Airlines was forced to make an emergency landing after a fuselage panel ruptured during flight.

The Jan. 5 incident put Boeing’s manufacturing processes back in the spotlight, triggering regulatory scrutiny and an investigation by Congress.

Meanwhile, victims’ families have repeatedly urged federal prosecutors to take Boeing to court rather than reach another settlement.

But prosecutors were also under pressure not to cause further damage to Boeing, as the company is considered vital to the US aviation industry as well as national security.

Castle said that in his presentation Sunday, the lead U.S. prosecutor “acknowledged that the families have a ‘strong interest’ in a trial, but repeatedly stated that the Justice Department could not prove the charges beyond a reasonable doubt.”

“The families argued repeatedly for a trial and a jury to decide,” he said.

Boeing objected to the Justice Department’s findings in mid-June but has acknowledged the severity of the safety crisis.

CEO Dave Calhoun, who has agreed to step down at the end of this year, said at a recent congressional hearing that the company was “taking action and making progress.”

Ultimately, it will be up to the Texas federal judge overseeing the case to decide whether the new DPA will pass.

(Except for the headline, this story has not been edited by NDTV staff and is published from a syndicated feed.)

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