A federal judge in Texas has dismissed a criminal conspiracy charge against Boeing over two fatal 737 Max crashes, providing the company a major legal reprieve. The decision concludes a years-long legal battle but has been met with sharp criticism from families of the 346 victims who perished in the accidents.
U.S. District Judge Reed O’Connor granted the Department of Justice’s request to drop the charge, though he expressed deep reservations about the public interest being served. In his ruling, O’Connor stated that he disagreed with the dismissal and believed it failed to secure necessary accountability for aviation safety, but acknowledged that the court lacked authority to block the government’s motion absent evidence of bad faith.
The case stemmed from two crashes involving Boeing’s 737 Max aircraft: a Lion Air flight that plunged into the Java Sea off Indonesia in October 2018, and an Ethiopian Airlines flight that crashed minutes after takeoff from Addis Ababa in March 2019. Investigations revealed that both disasters were linked to a flawed flight control system, known as MCAS, which repeatedly forced the planes’ noses down based on erroneous sensor data.
Boeing had initially reached a $2.5 billion settlement with the DOJ in 2021, avoiding prosecution by agreeing to improve safety protocols. However, the agreement was reopened last year after a separate incident where a door plug blew out mid-flight on another 737 Max, leading prosecutors to allege Boeing had violated the terms. The company subsequently agreed to plead guilty, but O’Connor rejected that deal in December 2024.
Under the newly approved resolution, Boeing will avoid a criminal conviction but must pay or invest an additional $1.1 billion. This includes a $243 million fine, compensation for victims’ families, and funding for internal safety and quality measures. The company is also required to hire an independent compliance consultant, though it retains the ability to choose the consultant itself—a point of contention for critics.
Families of the crash victims have vehemently opposed the dismissal, arguing that it denies them justice and undermines deterrence against corporate misconduct. Many relatives traveled from abroad to testify at a September hearing, urging the judge to appoint a special prosecutor instead. Attorney Paul Cassell, representing some families, announced plans to appeal, stating that the courts should not stand by while injustice is perpetrated.
In response, Boeing affirmed its commitment to the agreement and to ongoing efforts to strengthen its safety and compliance programs. The DOJ defended the resolution as the most just outcome, noting that it provides finality and requires immediate action from Boeing. Prosecutors also highlighted that the company has made meaningful progress in its anti-fraud programs this year.
The dismissal closes the criminal chapter of the 737 Max saga, but Boeing continues to face civil lawsuits and heightened regulatory scrutiny. As the first civil trial over the Ethiopia crash began this week, the company’s reputation and financial health remain under pressure, with the aviation industry and public watching closely for signs of lasting change.