U.S. prosecutors are recommending to senior Justice Department officials that criminal charges be brought against Boeing after finding that the company violated a settlement related to two fatal crashes, Reuters reports. The Justice Department must decide by July 7 whether to prosecute Boeing. In May, officials determined the company violated a 2021 agreement that had shielded Boeing from a criminal charge of conspiracy to commit fraud arising from fatal crashes in 2018 and 2019 involving the 737 MAX jet. In the 2021 deal, the Justice Department agreed not to prosecute Boeing over allegations it defrauded the Federal Aviation Administration if the company overhauled its compliance practices and submitted regular reports. Boeing agreed to pay $2.5 billion to settle the investigation.
The two sides are in discussions over a potential resolution to the DOJ investigation and there is no guarantee officials will move forward with charges. Criminal charges would deepen an unfolding crisis at Boeing, which has faced scrutiny from U.S. prosecutors, regulators and lawmakers after a panel blew off one of its jets operated by Alaska Airlines mid-flight Jan. 5, just two days before the 2021 settlement expired. Instead of prosecuting Boeing, DOJ could extend the 2021 settlement by a year or propose new, stricter terms. In addition to financial penalties, the strictest settlements typically involve installing a third party to monitor a company's compliance. Last week, families of crash victims pressed prosecutors to seek a fine of nearly $25 billion against Boeing and move forward with a criminal prosecution.
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