Deferred Prosecution Agreement (DPA) is a legal tool used by the United States Department of Justice (DOJ) to avoid criminal charges against a company accused of various legal violations. DPA is an agreement between the DOJ and a company that allows the company to avoid criminal charges if it follows the terms and conditions of the agreement. In recent years, DPAs have been increasingly used in cases of corporate fraud, corruption, and violations of the Foreign Corrupt Practices Act.
Boeing, one of the world`s largest aerospace companies, has been under investigation by the DOJ for its involvement in the two fatal crashes of its 737 Max planes. In March 2019 and March 2020, two 737 Max planes crashed, killing a total of 346 people. The crashes were caused by a software malfunction that Boeing was aware of but failed to disclose to its customers and regulators.
In January 2021, Boeing agreed to pay $2.5 billion in fines and compensation to the families of the crash victims to settle the criminal charges. As part of the settlement, Boeing entered into a Deferred Prosecution Agreement with the DOJ, which would remain in effect for three years.
Under the terms of the DPA, Boeing admitted to a conspiracy to defraud the Federal Aviation Administration (FAA) by concealing information about the 737 Max`s automated flight control system. Boeing also agreed to cooperate with ongoing investigations and to implement an ethics and compliance program to prevent future violations.
DPAs have been criticized by some legal experts who argue that they allow corporations to avoid criminal charges and accountability. However, supporters of DPAs argue that they can be an effective tool to hold corporations accountable for their actions while also avoiding the negative consequences of criminal prosecutions, such as layoffs, bankruptcy, and damage to the economy.
The DPA entered into by Boeing highlights the importance of compliance with ethical standards in the corporate world, particularly in highly regulated industries like aerospace. It also underscores the need for transparency and accountability in corporate practices, especially when public safety is at stake.
In conclusion, the Deferred Prosecution Agreement between Boeing and the DOJ is a significant step towards holding the company accountable for its actions in the 737 Max crashes. It is a reminder that corporations must prioritize ethical standards and public safety over profits, and that DPAs can be a useful tool to achieve this goal.