US Judge halts Boeing trial linked to 737 crash cases

A U.S. federal judge on Monday called off the upcoming trial involving aviation giant Boeing over the deadly crashes of its 737 MAX planes, which claimed nearly 350 lives.

The trial, initially slated for June 23, was shelved after Boeing and the U.S. Department of Justice reached a tentative agreement to resolve the years-long criminal investigation tied to the tragedies.

U.S. District Judge Reed O'Connor approved the joint request from both sides to cancel the trial proceedings, which were to take place in Fort Worth, Texas.

However, the judge must still grant final approval for the settlement. If he declines to endorse the deal, the trial could be rescheduled.

Under the proposed agreement criticized by some families of the crash victims Boeing will pay $1.1 billion, and the U.S. Department of Justice will drop a criminal charge related to how the company handled the 737 MAX certification process.

The deal allows Boeing to avoid pleading guilty to fraud linked to the MAX aircraft, which was involved in two fatal crashes: a Lion Air flight in 2018 and an Ethiopian Airlines flight in 2019, together claiming 346 lives.

The U.S. Justice Department defended the settlement, calling it “a fair and just resolution that serves the public interest.”

It stated that the agreement ensures Boeing is held further accountable and delivers immediate, substantial benefits while also sparing the public the uncertainty and potential setbacks of a lengthy trial.

Relatives of the 737 MAX crash victims harshly criticized the proposed settlement, describing it as overly lenient on Boeing.

“This kind of non-prosecution deal is unprecedented and clearly unjust, especially given that this is the deadliest corporate crime in U.S. history,” said Paul Cassell, a lawyer representing some of the victims’ families.

The Justice Department acknowledged that some victims’ families supported the settlement, with one quoted as saying, “the grief resurfaces every time this case is discussed in court or other forums,” highlighting a desire for closure.

The proposed agreement marks the latest chapter in a years-long legal battle following the two deadly crashes that severely damaged Boeing’s reputation and triggered major leadership changes within the company.

The case stems from a January 2021 agreement between the Justice Department and Boeing, in which the company settled allegations that it had knowingly misled the Federal Aviation Administration during the 737 MAX certification process.

As part of that deal, Boeing was placed on a three-year probation.

However, in May 2024, the Justice Department concluded that Boeing had breached the terms of that agreement, citing multiple safety lapses that occurred after the settlement.

In July 2024, Boeing agreed to plead guilty to a charge of "conspiracy to defraud the United States," acknowledging its role in misleading federal regulators during the certification of the 737 MAX aircraft.

However, in December, Judge O'Connor declined to approve a settlement that would have formalized Boeing’s guilty plea, effectively deferring the decision to the incoming Trump administration.

Under the new agreement announced in May, Boeing is required to pay a $487.2 million fine though it will receive credit for the $243 million it already paid under the 2021 deal.

Additionally, the company will allocate $444.5 million to a fund dedicated to supporting the families of crash victims and invest another $455 million to enhance its internal systems for compliance, safety, and quality assurance.