The Justice Department said Tuesday that Boeing violated a 2021 agreement related to problems with the company’s 737 Max model that led to two deadly plane crashes in 2018 and 2019.
In a letter to a federal judge, the department said Boeing had failed to “design, implement and enforce” an ethics program to prevent and detect violations of U.S. fraud laws in the company’s operations. The creation of that program was a condition of the Boeing deal, which also carried a $2.5 billion fine.
The Justice Department’s determination means it can proceed with a 2021 criminal charge accusing Boeing of conspiracy to defraud the Federal Aviation Administration, although Boeing can challenge Tuesday’s decision.
In a statement, Boeing said the company believed it had met the terms of the agreement and added that it looked forward to having the opportunity to respond.
“In doing so, we will engage with the department with the utmost transparency, as we have done throughout the life of the agreement,” Boeing said in its statement.
The Justice Department declined to comment. Paul G. Cassell, a lawyer representing the families of victims of the fatal plane crashes, said his clients planned to meet with the government on May 31 to discuss next steps in the case.
When the government reached a settlement with Boeing in January 2021, many families of crash victims said the Trump administration had been too lenient on the plane maker.
“This is a positive first step and, for families, it will be a long time coming,” Cassell said. “But we need the Department of Justice to take more action to hold Boeing accountable.”
Crashes of 737 Max 8 aircraft in Indonesia and Ethiopia killed 346 people, prompting the FAA to ground the entire 737 Max fleet. An investigation found that both accidents involved the erroneous activation of a maneuvering system designed to help avoid stalls in flight.
In another settlement, the Securities and Exchange Commission said Boeing had offered misleading assurances about the safety of the 737 Max in public statements after both crashes, despite knowing that the maneuvering system had posed an ongoing safety problem.
The Justice Department reached its conclusion at a tumultuous time for Boeing. The company said in March that its chief executive, Dave Calhoun, would resign at the end of the year, along with Stan Deal, head of the division that makes planes for airlines and other commercial customers.
Calhoun replaced Dennis A. Muilenburg, who led the company during the accidents in 2018 and 2019. Boeing fired Muilenburg, whose performance during the crisis angered lawmakers and alienated victims’ families.
Mark Walker contributed with reports.