The Boeing 737 MAX settlement most people are asking about is the May 2025 non-prosecution agreement, in which Boeing paid or committed more than $1.1 billion and admitted to obstructing federal oversight, and the U.S. Department of Justice dropped its criminal fraud conspiracy charge tied to the crashes of Lion Air Flight 610 and Ethiopian Airlines Flight 302 that killed 346 people. That deal sits on top of a 2021 agreement worth more than $2.5 billion, a $200 million SEC penalty, a $237.5 million shareholder settlement, and billions more paid through wrongful death lawsuits filed by victims’ families. A federal appeals court closed off the last challenge to the criminal deal in May 2026.
What Boeing Paid and Admitted in the 2025 Non-Prosecution Agreement
The non-prosecution agreement was signed on May 29, 2025 and runs three years, through May 2028. Boeing had to admit to obstructing federal oversight of the 737 MAX and commit more than $1.1 billion across three buckets:1CNN. Boeing Settlement Over 737 Max Crashes2U.S. Department of Justice. Boeing Non-Prosecution Agreement
- A $487.2 million criminal penalty, with $243.6 million credited from the amount already paid under the 2021 deferred prosecution agreement.
- $444.5 million added to the existing crash victims’ compensation fund.
- $455 million to be spent on internal safety, quality, and compliance programs over the three-year term.
The most significant change from the rejected 2024 plea deal was the removal of an independent, court-supervised compliance monitor. The DOJ said Boeing had made “meaningful progress” on compliance and that the FAA was providing “more robust oversight.” Instead of a monitor, Boeing retains an independent compliance consultant of its own choosing; the company picked Guidepost Solutions LLC. Boeing’s board must also meet with crash victims’ families, and the company must submit annual compliance reports to the DOJ.3Forbes. Boeing DPA Drama Comes to a Close, At Least for Now2U.S. Department of Justice. Boeing Non-Prosecution Agreement
How the Criminal Case Got Here
The underlying fraud involved Boeing flight technical pilots who concealed changes to the Maneuvering Characteristics Augmentation System, an automated flight-control feature that could push the 737 MAX’s nose down without pilot input. Because the FAA was misled, all references to MCAS were removed from pilot training materials, and airlines never trained pilots on the system that contributed to both crashes.4U.S. Department of Justice. Boeing Charged With 737 Max Fraud Conspiracy and Agrees to Pay Over $2.5 Billion
On January 7, 2021, the DOJ charged Boeing with one count of conspiracy to defraud the United States and immediately entered into a deferred prosecution agreement. Boeing agreed to pay more than $2.5 billion, split into a $243.6 million criminal penalty, $1.77 billion in compensation to airline customers hit by the 737 MAX grounding, and a $500 million fund for the heirs and families of the 346 crash victims. In exchange, the DOJ would dismiss the conspiracy charge after three years if Boeing complied with the terms, which included cooperating with investigators, meeting quarterly with the Fraud Section, filing annual compliance reports, creating a permanent aerospace safety committee on its board, and restructuring engineering so safety-critical teams reported through the chief engineer.4U.S. Department of Justice. Boeing Charged With 737 Max Fraud Conspiracy and Agrees to Pay Over $2.5 Billion5The New York Times. Boeing Settlement With Justice Department
After a door plug blew out of an Alaska Airlines 737 MAX 9 in January 2024, the DOJ notified the court in May 2024 that Boeing had breached the DPA by failing to design, implement, and enforce the required compliance and ethics program. That reopened the door to prosecution. Boeing then agreed to plead guilty to one count of conspiracy to commit fraud, with a $487.2 million fine, at least $455 million in safety and compliance investments, and an independent compliance monitor.6U.S. Department of Justice. United States v. The Boeing Company7PBS. Boeing Guilty Plea Fraud 737 Max Plane Crashes
U.S. District Judge Reed O’Connor rejected that plea on December 5, 2024. He objected to the DOJ and Boeing controlling the selection of the monitor, criticized the inclusion of diversity, equity, and inclusion criteria in the selection process, and said the three-year effort to ensure Boeing’s compliance had “failed.”8NPR. Court Rejects Boeing Plea Deal Over 737 Max Crashes
After the change in administration in January 2025, the DOJ pivoted to the non-prosecution deal. On November 6, 2025, Judge O’Connor granted the motion to dismiss the charge but said the NPA “fails to secure the necessary accountability to ensure the safety of the flying public.” He called the government’s stated concern about litigation risk “unserious,” noting the DOJ already held a signed confession from Boeing’s CEO and chief legal officer. He concluded he lacked authority to block the dismissal: “Poor discretion may not be countered with judicial overreach.”9CNBC. Boeing Criminal Case Over 737 Max Crashes10Courthouse News Service. Feds Drop Charges Against Boeing Over 737 Max Crashes
What the Families Received, and Why Their Appeal Failed
The original $500 million victim compensation fund, administered by Kenneth Feinberg and Camille Biros, worked out to roughly $1.45 million per eligible family. The claim deadline was October 15, 2021, and by 2026 the majority of claims had been approved and paid, with a small number of outstanding matters still being closed. The 2025 NPA added another $444.5 million to that fund.11The Hill. $500M Compensation Fund Opens for Boeing Max 737 Victims12Boeing 737 MAX Crash-Victim Beneficiaries Compensation Fund. Boeing 737 MAX Crash-Victim Beneficiaries Compensation Fund
Families, represented by attorney Paul Cassell, opposed the NPA at every stage. They argued the DOJ had negotiated the deal “behind closed doors” and violated their right to confer under the federal Crime Victims’ Rights Act. Their lawyers called the deal “morally repugnant,” a “slap on the wrist,” and “a bribe.”13CNN. Boeing Justice Drop Criminal Case Morally Repugnant14Clifford Law Offices. Families of Boeing Max 8 Crash Victims Ask Federal Appellate Court to Overturn District Court Judge’s Order
On November 13, 2025 the families filed petitions for a writ of mandamus with the Fifth Circuit Court of Appeals. A three-judge panel unanimously denied the petition on March 31, 2026, finding the DOJ had fulfilled its duty to confer and that the CVRA does not give nonparties a cognizable interest in the underlying prosecution or its dismissal. The full Fifth Circuit denied a rehearing petition on May 22, 2026, ending the criminal case.15U.S. Court of Appeals for the Fifth Circuit. In re Naoise Connolly Ryan, et al.16FlightGlobal. US Appeals Court Declines to Review 737 Max Fraud Case Outcome
Wrongful Death Payouts
Families of victims from both crashes filed dozens of wrongful death lawsuits in federal court in Chicago. In 2021, Boeing accepted legal responsibility for the Ethiopian Airlines crash, so juries in those cases decide only how much compensation is owed. Boeing has said it settled more than 90% of the civil lawsuits from both crashes, paying billions in total, and by November 2025 fewer than a dozen cases remained unresolved.17CBC. Vaidya Family Ethiopia Boeing 2019 Crash18NBC News. Boeing Ordered to Pay $28 Million to 737 Max Crash Victim’s Family
The first case to reach a jury was that of Shikha Garg, a United Nations consultant killed in the Ethiopian Airlines crash. On November 12, 2025, after a one-week trial and roughly two hours of deliberation, a Chicago federal jury awarded her family more than $28 million, including $10 million for pain and suffering before the crash. A separate deal between the parties added 26% interest and a $3.45 million payment to her husband, bringing the total to $35.85 million. Boeing agreed not to appeal.19ABC7 Chicago. Jury Awards $28M to Family of United Nations Consultant Killed in 737 Max Crash
Other cases settled without trial. Manant Vaidya, who lost six family members, settled in January 2026, days into trial. Paul Njoroge, a Canadian man who lost his wife and three children, settled in July 2025. Terms of the confidential settlements were not disclosed.17CBC. Vaidya Family Ethiopia Boeing 2019 Crash
The Shareholder and SEC Settlements
Boeing shareholders sued the company’s board in Delaware Chancery Court, alleging directors breached their fiduciary duties by dismantling Boeing’s safety-engineering culture. Vice Chancellor Morgan T. Zurn approved a $237.5 million settlement on March 22, 2022, the largest cash settlement of its kind in Delaware court history. The money, paid by Boeing’s directors-and-officers insurers, went to the company. The deal also required governance changes: separating the CEO and board chair roles in the bylaws, adding directors with aviation and safety expertise, creating a five-year ombudsperson program for employees to raise safety concerns, and mandating public reporting on safety enhancements.20Lieff Cabraser Heimann and Bernstein. $237.5M Boeing Derivative Suit Settlement Granted Final Approval21Reuters. Boeing Directors Agree $237.5 Million Settlement Over Max Safety Oversight
The Securities and Exchange Commission separately charged Boeing and former CEO Dennis Muilenburg with misleading investors about the safety of the 737 MAX after the crashes. In September 2022, Boeing paid a $200 million penalty and Muilenburg paid $1 million. Neither admitted or denied the findings.22U.S. Securities and Exchange Commission. SEC Charges Boeing and Former CEO Dennis Muilenburg23NPR. Boeing Will Pay $200 Million to Settle SEC Charges Over 737 Max Crashes
Securities Class Actions Still Pending
Two investor class actions remain unresolved. In re Boeing Co. Aircraft Securities Litigation, in the Northern District of Illinois, covers investors who bought Boeing stock or options between November 2018 and October 2019. Judge Franklin U. Valderrama certified the class in March 2026, and securities fraud claims against Boeing and Muilenburg are proceeding after claims against former CFO Gregory Smith were dismissed in 2024.24Bloomberg Law. Boeing Investors Gain Class Status in 737 Max Safety Claims Suit
In re The Boeing Company Securities Litigation, in the Eastern District of Virginia, covers a later window from January 2021 to January 2024, focused on alleged misrepresentations about safety and compliance during the DPA period leading up to the door plug blowout. Judge Leonie M. Brinkema certified that class in March 2025, writing that the complaint supports claims of “material misstatements made to the investing public.” Boeing has appealed the certification to the Fourth Circuit. Neither case has reached trial or settlement.25Labaton Keller Sucharow. In re The Boeing Company Securities Litigation