A federal appeals court has shut down an effort by families of Boeing 737 Max crash victims to reopen a criminal case against the company, dealing a major blow to their push for criminal accountability after two fatal crashes killed 346 people. On Tuesday, a three-judge panel of the 5th U.S. Circuit Court of Appeals unanimously refused to revive the case, leaving in place a lower court ruling that let the U.S. Justice Department drop the charge after cutting a deal with Boeing.
The panel rejected families’ arguments that federal prosecutors had violated their rights under the Crime Victims’ Rights Act by shutting them out of last year’s negotiations with Boeing, according to the Associated Press. Those talks led to the dismissal of a conspiracy charge tied to accusations that Boeing misled federal regulators about a flight-control system implicated in the crashes. Paul Cassell, an attorney for the families, blasted the ruling as “badly flawed” and said it lets Boeing “escape criminal justice accountability for killing 346 people,” the AP reported.
Deal That Ended The Case
After concluding that Boeing had breached a 2021 deferred-prosecution agreement, the Justice Department in May 2025 reached a non-prosecution agreement that calls for the company to pay or invest more than $1.1 billion, which includes roughly $444.5 million for a victims’ fund. As outlined in a legal summary from Cadwalader, prosecutors argued the agreement provided immediate accountability and concrete public benefits while avoiding the uncertainty and delay of a jury trial.
What The Appeals Court Said
The appeals panel sided with the lower court’s view that the Crime Victims’ Rights Act does not grant victims an “unlimited right” to second-guess prosecutors’ decisions about charging or dismissing cases and therefore could not be used to resurrect the Boeing prosecution, according to the Associated Press. U.S. District Judge Reed O’Connor had earlier rejected a proposed plea deal, then later approved the Justice Department’s request to withdraw the criminal charge in November, a procedural history the panel leaned on in its reasoning.
Families' Reaction And Legal Stakes
Lawyers for the victims say the department cut the deal with Boeing without giving families a meaningful role, and they urged the courts to demand stronger accountability in future cases, as reported by ClickOnDetroit. Boeing, in filings with the appeals court, said more than 60 families “affirmatively supported” the resolution and that the company “deeply regrets” the crashes and has paid substantial compensation to victims.
What Comes Next
With the appeals court’s decision, families face a narrower path to challenge how prosecutors wield their discretion under the Crime Victims’ Rights Act. Even so, relatives of victims and their lawyers say they intend to keep pressing for accountability in other arenas. Legal analysts note that the ruling highlights the wide latitude courts give to prosecutors and may push the fight toward civil lawsuits, regulatory action, and congressional oversight, according to analysis by Cadwalader.
