NVDA Q3 Earnings Alert: Why our AI stock picker is still holding Nvidia stockRead More

Boeing tells DOJ it did not violate deal after 737 MAX crashes, source says

Published 06/12/2024, 07:55 PM
Updated 06/12/2024, 08:16 PM
© Reuters. FILE PHOTO: The Boeing logo is seen on the side of a Boeing 737 MAX at the Farnborough International Airshow, in Farnborough, Britain, July 20, 2022. REUTERS/Peter Cziborra/File Photo
BA
-

(Reuters) - Boeing (NYSE:BA) told the U.S. Justice Department it did not violate a deferred prosecution agreement after fatal crashes involving the 737 MAX, a source familiar with the matter told Reuters on Wednesday.

The U.S. planemaker was responding to a Justice Department determination in May that Boeing violated a 2021 deferred prosecution agreement (DPA). The DPA had shielded the company from a criminal charge arising from fatal crashes in 2018 and 2019 that killed 346 people.

"We'll decline to comment on any specific communications with the Justice Department, however, we continue to engage transparently with the Department, as we have throughout the term of the agreement," a Boeing spokesperson told Reuters.

The Justice Department did not immediately respond to Reuters' request for comment.

The Justice Department found in May that Boeing had 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," according to a court filing.

However, Reuters earlier this month reported that Boeing executives are unlikely to be criminally charged over fatal crashes as the statute of limitations has likely passed.

© Reuters. FILE PHOTO: The Boeing logo is seen on the side of a Boeing 737 MAX at the Farnborough International Airshow, in Farnborough, Britain, July 20, 2022. REUTERS/Peter Cziborra/File Photo

Prosecutors have until July 7 to inform a federal judge in Texas of their plans, which could include proceeding with a criminal case and negotiating a plea deal with Boeing, according to a person familiar with the matter, court filings and correspondence that Reuters reviewed. Short of a prosecution, the Justice Department could also extend the DPA a year.

Boeing had earlier said it believes it has "honored the terms of the agreement" and looks forward to responding to the Justice Department.

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.