Victims' Families Demand DOJ Impose $24.78 Billion Fine on Boeing for "Deadliest Corporate Crime"

The families of victims from the two fatal Boeing 737 MAX crashes have called on the Department of Justice (DOJ) to fine Boeing $24.78 billion. This fine, they argue, could be reduced if Boeing allocates funds to enhance safety and quality management processes. This demand came shortly after David Calhoun, Boeing's president and CEO, testified before a US Senate Subcommittee.

By Avinash VJ

The request is grounded in the assertion that Boeing's actions, which led to the deaths of 346 people, constitute the "deadliest corporate crime in US history." Paul Cassell, representing the families of 15 victims, emphasized that the company's crime resulted in losses exceeding $12.3 billion, justifying the proposed maximum fine of $24.7 billion. Cassell suggested that the fine could be partially suspended if Boeing invests in improving its quality control and safety measures. The families also urged the DOJ to pursue aggressive criminal prosecution and requested a jury trial date within 70 days of July 7, 2024, citing the Speedy Trial Act.

Cassell stated, “If Boeing requests plea negotiations, the Department should not offer Boeing any concessions. If the Department seems likely to reach a tentative agreement with Boeing on plea concessions, the families request an opportunity to exercise their right under the CVRA [Crime Victims’ Rights Act] to confer with the Department about any possible concessions.”

The families prefer criminal prosecution, a sentiment echoed by US lawmakers during a hearing at the US Senate Permanent Subcommittee on Investigations on June 18. This hearing included testimony from David Calhoun, who succeeded former CEO Dennis Muilenburg. Cassell identified Muilenburg as one of the corporate officials who should be prosecuted for his role in concealing issues with the Maneuvering Characteristics Augmentation System (MCAS) from the public and the FAA.

Although Boeing had previously reached a plea deal with the DOJ regarding the crashes—and despite a DOJ ruling that the company potentially violated this deferred prosecution agreement—the recent hearing is part of ongoing scrutiny into Boeing’s safety and quality management. This scrutiny was heightened after an Alaska Airlines midair door plug blowout incident in January.

In his testimony, Calhoun apologized to the victims' families and reiterated Boeing’s commitment to safety and quality. “Much has been said about Boeing’s culture. We’ve heard those concerns loud and clear. Our culture is far from perfect, but we are taking action and making progress. We understand the gravity, and we are committed to moving forward with transparency and accountability, while elevating employee engagement,” he said.

The investigation and subsequent hearings, including one in April led by the US Senate Permanent Subcommittee on Investigations, were spurred by whistleblower allegations regarding the Boeing 777 and 787 programs.

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