The Department of Justice said Boeing breached its obligations under a 2021 agreement that allowed it to avoid criminal prosecution for two fatal 737 MAX crashes, according to a court filing Tuesday.
Why it matters: Under the agreement, Boeing paid more than $2.5 billion to settle criminal charges related to a conspiracy to defraud the Federal Aviation Administration allegations in connection with the FAA's investigation into the jet crashes that killed 346 people in 2018 and 2019.
What they're saying: The DOJ said in a letter to U.S. District Judge Reed O'Connor in Fort Worth, Texas, that Boeing failed to "design, implement, and enforce a compliance and ethics program to prevent and detect violations of the U.S. fraud laws throughout its operations," per Reuters.
The other side: "We believe that we have honored the terms of that agreement, and look forward to the opportunity to respond to the Department on this issue," Boeing said in a statement.
- "As we do so, we will engage with the Department with the utmost transparency, as we have throughout the entire term of the agreement, including in response to their questions following the Alaska Airlines 1282 accident," the statement continued.
What we're watching: The Justice Department said it had yet to determine how it will proceed, but that Boeing is subject to prosecution.
- The DOJ didn't immediately respond to Axios' request for comment.
Zoom out: The aircraft maker is facing several federal investigations after a mid-air blowout with one of its 737 MAX 9 jets during an Alaska Airlines flight earlier this year reignited safety concerns.
Read the DOJ's letter to Judge O'Connor, via DocumentCloud:
Go deeper: What's going on with Boeing 737 Max 9 planes
