Boeing faces potential criminal charges in the wake of the 737 MAX crashes, as U.S. prosecutors recommend legal action against the company. The Justice Department has until July 7 to decide whether to prosecute Boeing for allegedly breaching a deferred prosecution agreement reached in 2021.
The original deal aimed to protect Boeing from a fraud charge by implementing compliance measures, but prosecutors believe the company failed to meet these obligations. This comes after Boeing settled for $2.5 billion over claims of deceiving the FAA about the 737 MAX jets.
Boeing denies any wrongdoing and insists it followed the agreement’s terms. However, discussions between Boeing and the Justice Department are ongoing. If charged, Boeing could face significant penalties and business restrictions.
Victims’ families have criticized the 2021 settlement, urging a $25 billion fine and criminal prosecution. Despite CEO Dave Calhoun’s apologies at a recent Senate hearing, Boeing’s stock has dropped by over 14% in the past year.
Investors can access Boeing stock through ETFs like IShares U.S. Aerospace & Defense ETF and Invesco Aerospace & Defense ETF. The potential outcome of these legal proceedings remains uncertain, with both sides yet to reach a final decision.
It remains to be seen how this situation will play out for Boeing and the broader aerospace industry.
