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Boeing Faces Separate Civil Verdict and Criminal Case Dismissal Over 737 MAX Crashes

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Boeing Faces $49.5M Civil Verdict, Criminal Charge Dismissed in 737 MAX Crash Cases

A federal jury in Chicago has ordered Boeing to pay $49.5 million in compensatory damages to the family of a victim of the 2019 Ethiopian Airlines 737 MAX crash, while a separate federal judge in Texas has dismissed a criminal fraud conspiracy charge against the company, concluding a years-long legal process.

The two events represent the latest developments from the crashes of a Lion Air flight in October 2018 and an Ethiopian Airlines flight in March 2019, which resulted in the deaths of all 346 passengers and crew on board.

Civil Trial Verdict

Damages Awarded

A jury in the U.S. District Court for the Northern District of Illinois awarded $49.5 million to the family of Samya Stumo, a 24-year-old passenger killed in the Ethiopian Airlines crash. The trial addressed only the amount of damages, as Boeing had previously admitted responsibility for the crash.

The jury allocated the award as follows:

  • $21 million for Stumo's experience during the fatal flight
  • $16.5 million for her family's loss of companionship
  • $12 million for the family's grief

Related Civil Cases

In November 2024, a separate jury awarded over $28 million to the family of Shikha Garg, another victim of the Ethiopian Airlines crash. A civil trial concerning Garg's family commenced in federal court in Chicago on the same week as the Stumo verdict.

Attorneys for the Stumo family indicated they will pursue punitive damages on appeal against Boeing executives and suppliers. The verdict resolves one of the last remaining civil cases from the two crashes.

Criminal Case Dismissal

Court Ruling

U.S. District Judge Reed O'Connor in Texas granted the U.S. Department of Justice's (DOJ) request to dismiss a criminal fraud conspiracy charge against Boeing.

Judge O'Connor stated that he disagreed with the public interest implications of the dismissal but concluded his concerns did not provide sufficient grounds to deny the request, citing the presumption of governmental "good faith" and his lack of authority to override the request.

Judge O'Connor further noted that the agreement "fails to secure the necessary accountability to ensure the safety of the flying public," but affirmed that the government had not acted in bad faith, had provided explanations for its decision, and had fulfilled its obligations under the Crime Victims' Rights Act.

DOJ Agreement Terms

As part of the resolution, Boeing has agreed to an additional financial commitment of $1.1 billion. This includes funds for fines, compensation for victims' families, and investments in internal safety and quality measures.

The agreement permits Boeing to select its own compliance consultant, foregoing an independent monitor. A DOJ spokesperson stated the agreement offers finality for victims and mandates immediate action from Boeing, asserting confidence in the resolution's justice.

Victim Family Responses

The dismissal faced opposition from some families of crash victims. Paul Cassell, a lawyer representing some families, announced his intent to appeal the ruling. During a September hearing in Fort Worth, family members from various countries urged the court to reject the deal and appoint a special prosecutor.

According to source reports, families of 110 crash victims either supported or did not oppose the deal, while nearly 100 families voiced opposition.

Chronology of Legal Proceedings

  • 2021: The DOJ charged Boeing with criminal fraud conspiracy, alleging the concealment of critical flight control software information from regulators. Boeing admitted to the allegations and entered an agreement that included $2.5 billion in fines and compensation, alongside commitments to enhance safety standards and compliance programs. Boeing was permitted to avoid prosecution by paying the settlement and adhering to anti-fraud laws.

  • 2023: The case was re-opened following an in-flight incident involving a 737 MAX, leading the DOJ to accuse Boeing of breaching the original settlement terms.

  • 2024: The DOJ proposed a new agreement where Boeing would plead guilty to the fraud charge, pay an additional $243 million fine, and accept a court-appointed monitor. Judge O'Connor rejected this proposal in December, citing concerns over the monitor's selection process.

  • Current: Judge O'Connor granted the government's request to dismiss the charge, concluding the criminal case.

Technical Background

The criminal case focused on the Maneuvering Characteristics Augmentation System (MCAS) software developed by Boeing for the 737 MAX. The aircraft was introduced in 2017 as an updated 737, with Boeing suggesting it would require minimal additional pilot training.

Boeing did not include information about this system in airplane manuals, and most pilots were not aware of its presence.

The 737 MAX incorporated significant modifications, including the MCAS, designed to offset the effects of larger engines. In both fatal crashes, the MCAS software repeatedly commanded the aircraft's nose downward based on erroneous input from a single sensor, preventing pilots from regaining control.

Following the Ethiopian Airlines crash, 737 MAX aircraft were grounded globally for 20 months. Investigations revealed that Boeing had not informed key Federal Aviation Administration (FAA) personnel about the software changes prior to the aircraft's certification and the establishment of pilot training requirements.

Company and Government Statements

Boeing expressed condolences to all affected families and affirmed its commitment to the DOJ agreement and its ongoing efforts to strengthen safety, quality, and compliance programs.

The DOJ stated it had engaged "extensively" with crash victims' families, who presented "a broad set of views regarding the resolution."