How potential Boeing criminal charges could have ‘huge’ impact globally

globalnews.ca:

Boeing as the U.S. Justice Department has until July 7 to decide whether to prosecute the planemaker after prosecutors alleged the company violated a deferred prosecution agreement related to two fatal crashes, with lawyers recommending criminal charges.Officials alleged in May that the 2021 agreement, which shielded Boeing from a criminal charge of conspiracy to commit fraud arising from the 2018 and 2019 fatal crashes involving the 737 MAX jet, had been breached.Arnold & Porter law firm partner Deborah Curtis told Global News the recommendations of charges will add to the impact Boeing has been dealing with in the past months.“This is not something that’s going away easily for Boeing at all,” she said in an interview.

“It could have huge second and third order effects for Boeing and for countries all over the world.”Criminal charges would be just the latest crisis for the company, which has seen multiple incidents involving its planes in recent months, including when a panel blew off one of its jets mid-flight in early January.The exact criminal charges recommended by U.S. prosecutors have not been reported, though Reuters has stated they could extend beyond the original fraud charge from 2021.Curtis said there are a number of things that could be on the table, ranging from an extension of the deferred prosecution agreement to charges being laid which could have varying effects.Boeing could be ordered to pay additional fines, on top of the US$2.5 billion it paid to settle the investigation back in 2021, face further penalties or new charges.With revenue coming from U.S.

government contracts, any potential charges or felony conviction could jeopardize that. Curtis noted it could also impact contracts in Canada as