Boeing has reached a tentative agreement with the U.S. Justice Department to avoid criminal prosecution related to two deadly 737 Max crashes in 2018 and 2019. These crashes killed 346 people in Indonesia and Ethiopia. Under the deal, Boeing will pay more than $1.1 billion and provide an additional $445 million in compensation to the victims’ families. In return, the Justice Department will drop its fraud case, which could have led to a criminal conviction that might threaten Boeing’s eligibility as a federal contractor.

The Justice Department described the agreement as fair and said it brings accountability and financial consequences. Officials also said the deal supports long-term aviation safety, though it cannot undo the tragic loss of life. Many victims’ families, however, strongly criticized the agreement. They have called for a public trial and harsher penalties for Boeing. Some family members feel that the financial penalties are too low and that Boeing’s executives should face prosecution.

The crashes were caused by a hidden software system called MCAS. Faulty sensor data caused this system to push the nose of the planes down repeatedly. Boeing did not inform pilots or airlines about this software or recommend extra training. In 2021, Boeing was charged with fraud for misleading the Federal Aviation Administration and hiding the need for pilot training. At that time, Boeing agreed to pay $2.5 billion and to make safety reforms to avoid prosecution.

After prosecutors said Boeing failed to meet the reform requirements, the Justice Department reopened the fraud case. Boeing has now agreed to plead guilty in the new deal, avoiding a public trial. A previous plea deal was rejected by a federal judge last December due to concerns about compliance oversight. The current agreement still requires court approval to become final.