Boeing seeks to withdraw guilty plea agreement over 737 MAX crashes

SAN FRANCISCO - Boeing is seeking to withdraw an agreement to plead guilty to a criminal fraud charge related to two fatal 737 MAX crashes, The Wall Street Journal reported on Monday, citing sources familiar with the matter.

The company is reportedly seeking more lenient treatment from the US Department of Justice (DOJ).

The crashes, which occurred in 2018 and 2019, claimed 346 lives. The DOJ accused Boeing of deliberately misleading regulators about the Maneuvering Characteristics Augmentation System, which had a critical flaw that contributed to both accidents.

In 2021, Boeing and the DOJ entered into a deferred prosecution agreement, allowing the company to avoid a criminal conviction if it complied with certain conditions for three years. However, just days before the agreement was set to expire, a newly delivered 737 MAX plane operated by Alaska Airlines suffered an inflight panel detachment, raising renewed concerns over Boeing's quality control and manufacturing practices.

In May 2024, the DOJ determined that Boeing had violated the terms of the agreement, leading to a plea deal reached in July. The proposed deal required Boeing to pay a fine of 244 million US dollars, invest 455 million dollars in compliance and safety improvements, and accept the oversight of an independent monitor. However, in December 2024, US District Judge Reed O'Connor rejected the plea agreement.

Judge O'Connor has set an April 11 deadline for Boeing and the DOJ to provide an update on how they plan to proceed. The Wall Street Journal reported that Boeing is now preparing to withdraw its guilty plea agreement and aims to avoid the appointment of an independent monitor.

Families of the crash victims have criticized the plea deal, arguing that it is too lenient and gives Boeing too much influence in selecting the independent monitor. Mark Lindquist, an attorney representing some victims' families, said Boeing had already received favorable treatment under the 2021 agreement. "They violated that agreement. Now they want an even sweeter deal," he further said.

The court docket doesn't include any formal notice from Boeing or the DOJ to withdraw the agreement yet.