Boeing reaches settlements with the families of two victims from the 737 MAX crashes

Boeing Co (BA.N), the U.S. planemaker, has reached settlements with the families of two individuals who lost their lives in the March 2019 crash of an Ethiopian Airlines Boeing 737 MAX, just before a trial was set to begin, as confirmed by the company and the families’ lawyers on Monday.

The terms of the settlements with the families of victims Antoine Lewis and Darcy Belanger remain undisclosed.

The trial in U.S. District Court in Chicago was anticipated to be the inaugural case against the planemaker concerning the two fatal 737 MAX crashes in 2018 and 2019, which resulted in the bestselling plane’s 20-month grounding and incurred costs exceeding $20 billion for Boeing.

Boeing consented in 2021 to accept responsibility for compensatory damages to the families of the 157 individuals who lost their lives in the 2019 Ethiopian Airlines crash. The families decided against pursuing punitive damages.

Lewis, 39, was a U.S. Army captain on military leave, traveling to Africa to explore opportunities for starting a logistics business. Meanwhile, Belanger, 46, from Denver, Colorado, was en route to a United Nations Environmental Assembly where he was set to deliver a speech.

Boeing expressed its sincere apologies for the crashes on Monday, stating that it “made an upfront commitment to fully and fairly compensate the families and accepted legal responsibility for the accidents.” We will persist in our efforts to equitably address the claims of the family members.

The planemaker announced that it has resolved over 90% of claims related to the two 737 MAX accidents, having disbursed billions of dollars in compensation to the families via lawsuits, a deferred prosecution agreement, and additional payments.

Two additional trials are scheduled for July and November.

Boeing CEO Kelly Ortberg stated last week that the planemaker is engaged in discussions with the Justice Department to achieve a revised plea agreement regarding a criminal fraud case linked to the company’s alleged misrepresentations to regulators concerning a crucial safety system on the 737 MAX.

Boeing consented in July to enter a guilty plea regarding a charge of criminal fraud conspiracy and to pay a fine that could reach $487.2 million. A judge has scheduled a trial date for June 23, should a final agreement not be achieved.

Family members of the crash victims have described the plea agreement as a “sweetheart” deal that does not sufficiently hold Boeing responsible.

In May, the Justice Department determined that Boeing had breached a 2021 agreement that had protected it from prosecution related to the crashes.

Prosecutors subsequently opted to file criminal charges against Boeing and engage in negotiations for the current plea agreement.