Victims’ Lawyer Slams Boeing’s $1.1bn Crash Settlement as ‘Morally Repugnant’
A lawyer representing families of victims from one of the two fatal Boeing 737 Max crashes has condemned a proposed $1.1 billion settlement between Boeing and the U.S. Department of Justice, calling it “morally repugnant” and a way for the company to evade true accountability.
Sanjiv Singh, counsel for 16 families affected by the 2018 Lion Air disaster in Indonesia, told the BBC that the agreement allows Boeing to “sidestep true criminal accountability” for its role in the crashes that claimed 346 lives.
Under the terms of the deal, Boeing would avoid criminal prosecution in exchange for a payment package that includes $444.5 million earmarked for victims’ families, a $487.2 million criminal penalty (half of which was paid in 2021), and $455 million to strengthen safety, compliance, and quality control systems.
If approved by a federal judge, the settlement would resolve allegations that Boeing misled regulators over key flight control systems on its 737 Max aircraft – systems that investigators have linked directly to both crashes.
“The DOJ agreed that it will not further criminally prosecute the company,” Boeing stated in a filing with the U.S. Securities and Exchange Commission.
Singh, however, said his clients are outraged by what they see as a symbolic slap on the wrist. “If you look at that $1.1 billion, it’s actually like Boeing paying $10 to escape criminal liability. It’s as if they got a misdemeanour ticket or a parking ticket,” he said.
The crashes involved two nearly identical incidents. In October 2018, a Lion Air flight plunged into the Java Sea shortly after taking off from Jakarta, killing all 189 on board. Less than five months later, another 737 Max operated by Ethiopian Airlines crashed minutes after departure from Addis Ababa, resulting in 157 fatalities. Both accidents were traced back to a malfunctioning automated flight system.
While Boeing has acknowledged wrongdoing in the past and settled separate fraud charges in 2021, families of the victims continue to argue that the company has not faced adequate consequences for its actions.
“We are deeply sorry for their losses,” Boeing said in a statement, adding that it remains committed to “honouring their loved ones’ memories by pressing forward with broad and deep changes to our company.”
Relatives of the victims will have an opportunity to challenge the deal before it receives final court approval. The U.S. Department of Justice has not yet commented further on the agreement.