The possibility of Boeing being criminally prosecuted by the US Department of Justice is getting closer, and according to two sources, US prosecutors have suggested that senior officials from the Department of Justice file criminal charges against the company.
The US Department of Justice must decide whether to prosecute Boeing before July 7th. Previously, there was a settlement agreement between the two parties regarding two plane crashes in 2018 and 2019, and Boeing was exempt from criminal charges of conspiracy fraud due to the agreement.
But in May of this year, the US Department of Justice determined that Boeing had violated the terms of the agreement, did not thoroughly reform its compliance practices, and regularly submitted reports, as evidenced by the series of quality scandals that Boeing has exposed this year. This has prompted the US Department of Justice to reconsider the lawsuit against Boeing.
Boeing, on the other hand, has consistently insisted that it has complied with the terms of the 2021 settlement agreement and stated that it has conveyed its opinion to the Department of Justice, disagreeing with the Department's assertion that it has violated the settlement agreement.
Two sources pointed out that both sides are still discussing possible solutions, and the Ministry of Justice may not necessarily make charges.
Crisis approaching
The US prosecutors are the latest to express their desire to sue Boeing. Previously, after a congressional hearing by Boeing executives, some US lawmakers had expressed strong indignation and demanded that the US Department of Justice take legal action.
This also increases the possibility of criminal prosecution by the US Department of Justice against Boeing, further deepening Boeing's governance crisis. Due to a hatch explosion on a Boeing aircraft earlier this year, Boeing has been jointly reviewed by US prosecutors, aviation regulatory agencies, and legislators, causing unprecedented damage to its production and operations.
Sources say that a further risk is that the criminal proceedings filed by the US Department of Justice may go beyond the scope of the original settlement agreement's allegations of collusion fraud. But the Department of Justice may also choose not to sue Boeing, but to extend the 2021 settlement agreement for another year or propose stricter terms, such as establishing a third-party supervision company or reaching a plea agreement with Boeing.
One of the sources said that Boeing may be willing to pay economic fines and agree to accept supervision, but believes that pleading guilty would cause too much damage as pleading guilty usually incurs additional business restrictions.
Sources added that Boeing has received significant revenue from contracts with the US government, including the Department of Defense, and these revenues may also be threatened by felony convictions.
Last week, the families of the victims of the 2018 and 2019 Boeing accidents urged prosecutors to impose a fine of up to $25 billion on Boeing, and the families sought criminal prosecution against the Boeing executives of that year.