On Monday, Airplane maker Boeing Co (NYSE:BA) shares are trading higher after a Reuters report that said its executives are unlikely to face criminal charges over the fatal crashes in 2018 and 2019 that resulted in the deaths of 346 individuals.
The conclusion comes as the five-year statute of limitations for prosecuting most federal crimes has likely expired, according to the U.S. Justice Department officials who briefed victims’ family members.
In mid-May, The Justice Department determined that Boeing violated a 2021 deferred prosecution agreement (DPA) that previously protected the company from criminal charges related to the crashes.
The agreement required Boeing to avoid any further violations over a three-year period ending on January 7, 2024.
However, a significant incident two days before the agreement’s expiration raised concerns. A panel blew off a new Boeing 737 MAX 9 jet during a January 5 Alaska Air Group Inc (NYSE:ALK) flight, highlighting ongoing safety and quality issues.
According to Reuters, Boeing has until June 13 to present any disagreements with the department’s findings. The Justice Department will decide by July 7 whether to prosecute, extend the DPA, or pursue other options, such as a non-prosecution agreement.
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Boeing has maintained that it has honored the terms of the agreement and looks forward to responding to the department’s findings.
Several outcomes are possible, including a new DPA, a non-prosecution agreement, or even a trial over the fraud charge.
Additionally, officials have not found evidence of felonies during the DPA term, though victims’ families are urging for an enhanced sentence if Boeing is prosecuted and convicted, Reuters writes.
The Justice Department officials mentioned that proving cases of federal manslaughter or fraud involving aircraft parts beyond a reasonable doubt is unlikely.
Boeing stock has lost more than 14% in the last 12 months. Investors can gain exposure to the stock via IShares U.S. Aerospace & Defense ETF (BATS:ITA) and Invesco Aerospace & Defense ETF (NYSE:PPA).
Price Action: BA shares are trading higher by 2.27% at $181.64 at the last check on Monday.
Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.
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