US appeals court declines to review 737 Max fraud case outcome

Attorneys argued that crash victims’ relatives’ rights were violated, but appeal judges disagree.
US appeals judges have declined a second appeal filed by crash victims’ attorneys challenging the Department of Justice’s (DOJ’s) 2025 decision not to prosecute Boeing on fraud charges related to the 737 Max’s certification.

“The families that I represent are very disappointed with the Court of Appeals decision not to rehear the case,” says Paul Cassell, an attorney representing families of some people killed when two 737 Max jets crashed, in 2018 and 2019. “This important case –the deadliest corporate crime in US history – warranted review by the full Fifth Circuit.”

“We are currently evaluating our options,” he adds.

The families’ attorneys have been appealing to overturn a 2025 non-prosecution agreement between the DOJ and the company, and a federal judge’s related decision to toss the fraud case.

Those attorneys in November last year filed an initial petition with the US Court of Appeals for the Fifth Circuit, arguing that the DOJ’s handling of the case had violated crash victims’ rights under the Crime Victims’ Rights Act.

In March, a three-judge Fifth Circuit panel denied the motion, saying the DOJ had met its obligations.

Relatives’ attorneys in April filed a second appeal, this one asking the Fifth Circuit for an “en banc” rehearing – meaning a hearing before a broader panel of the circuit’s judges.

The 22 May ruling denied that petition, with three judges agreeing with the prior finding that the DOJ did not violate relatives’ rights.

The DOJ charged Boeing with fraud with 2021, alleging that two Boeing employees “intentionally misled the FAA regarding changes to the” 737 Max’s Maneuvering Characteristics Augmentation System. That system put both jets into dives from which the pilots did not recover.

The DOJ initially reached a deferred-prosecution deal with Boeing under which the company “admitted responsibility” and agreed to corrective actions and to pay fines, compensation to customers and remuneration to crash-victims’ families.

But in 2024 the DOJ tore up the deal after a Boeing manufacturing defect caused the in-flight failure of a 737 Max 9’s mid-cabin door-plug.

Boeing then pleaded guilty under a settlement agreement. But in December 2024, a judge tossed that deal, citing concerns related to the monitoring.

The DOJ then in 2025 reached the non-prosecution deal with Boeing, describing it as preferable to the uncertainty of taking the case to trial. That agreement required Boeing pay more fines and be subject to monitoring and prompted the judge to toss the case.

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