Boeing is reportedly on track to evade prosecution in connection with a fraud case linked to the tragic crashes of its 737 Max jet, which resulted in the loss of 346 lives. Sources familiar with the matter revealed that the US Department of Justice is contemplating a non-prosecution agreement that would spare the aerospace giant from having to plead guilty. The news of this potential deal elicited strong reactions from relatives of the crash victims, with some expressing outrage and labeling the proposal as “morally repugnant” following a tense discussion with senior justice department officials.

The fatal crashes involved Lion Air flight 610 in 2018, which claimed 189 lives, and Ethiopian Airlines flight 302 in 2019, resulting in the deaths of 157 individuals. These incidents led to the global grounding of the 737 Max for nearly two years and dealt a significant blow to Boeing’s reputation. Despite reaching a resolution in a criminal investigation earlier, Boeing faced accusations of violating the settlement in 2024, prompting the justice department to offer a controversial plea deal last summer.

However, in December, US district Judge Reed O’Connor in Texas rejected the agreement due to concerns over a diversity and inclusion provision related to the appointment of an independent monitor. This decision meant that the case would be inherited by the Trump administration, raising questions about the administration’s approach towards holding large companies accountable for legal breaches.

The possible retreat from criminal prosecution of Boeing has sparked criticism, with Sanjiv Singh, representing families of crash victims, denouncing the non-prosecution agreement as insufficient to drive fundamental changes in Boeing’s safety practices. Following these developments, Boeing’s shares experienced a 0.5% decline in New York.