US judge orders June trial for Boeing 737 Max fraud case | Boeing

A US judge ordered a 23 June trial date in the Department of Justice’s criminal fraud case against Boeing over the American planemaker’s alleged misrepresentations to regulators about a key system on the 737 Max.

Families of the victims of two deadly Max crashes, which claimed 346 lives, hailed an “opportunity for justice” on Tuesday. Boeing said it was in “good faith discussions” with the justice department.

The US federal government was accused last year of cooking up a “sweetheart plea deal” with Boeing, after it emerged the company had been given the chance to enter a guilty plea and pay a fine as part of its sentence, avoiding a high-profile trial.

While Boeing initially agreed to plead guilty, on Monday the Wall Street Journal reported the firm was seeking to withdraw the existing plea deal, under which it committed to paying up to $487.2m.

The US district judge Reed O’Connor initially rejected the plea deal, faulting a diversity and inclusion provision, and gave Boeing and the Department of Justice until next month to come up with an agreement on a new plea deal.

On Tuesday, O’Connor – who said in 2023 that “Boeing’s crime may properly be considered the deadliest corporate crime in US history” – did not indicate why he was setting a trial date, or withdrawing the previous 11 April deadline for the sides to reach a new deal.

Boeing said: “As stated in the parties’ recent filings, Boeing and the Department of Justice continue to be engaged in good faith discussions regarding an appropriate resolution of this matter.”

The justice department did not immediately respond to a request for comment.

Sanjiv Singh, counsel for 16 families of crash victims, said: “Judge O’Connor’s order is excellent and hopefully sends a loud and clear message to Boeing’s attempt to pivot and seek favor with the new administration. Accountability for killing hundreds, protecting millions of lives, and ensuring aviation safety should be policies any executive branch should get behind regardless of any larger agenda.”

Boeing’s previous plea deal, struck last year under the Biden administration, included spending $455m to improve safety and compliance practices over three years of court-supervised probation, as well as supervision by an independent monitor for three years.

Relatives of the victims of the two crashes, which occurred in 2018 and 2019, have argued the agreement failed to adequately hold Boeing accountable for the deaths of their loved ones.

“We urge the Department of Justice to stand on the right side of history, reject any further plea negotiations, and move forward with a full prosecution,” Erin Applebaum, a lawyer representing 34 families of those killed in the 2019 Max Ethiopian Airlines crash, said. “The families deserve their day in court, and this opportunity for justice must not be squandered.”

Last May, the justice department found Boeing had violated a 2021 agreement that had shielded it from prosecution over the crashes. Prosecutors then decided to criminally charge Boeing and negotiate the current plea deal.

Officials in the Trump administration have publicly argued that regulators must be firm with Boeing after a series of missteps, including last January’s cabin panel blowout. “We need to be tougher on Boeing,” said Steve Bradbury, who was confirmed as deputy transportation secretary this month.

Reuters contributed reporting