According to two informed sources, the U.S. Department of Justice will charge Boeing with fraud for its involvement in two fatal crashes and demand that the aircraft manufacturer either pleads guilty or faces trial.
The sources said that the Department of Justice plans to formally present Boeing with a plea agreement later in the day, which includes financial penalties and the appointment of an independent monitor to oversee the company's safety and compliance practices for the next three years.
Justice Department officials plan to give Boeing a week to respond to this non-negotiable proposal. If Boeing refuses to plead guilty, prosecutors plan to take the case to court.
Both Boeing and the Department of Justice declined to comment. Reuters was the first to report the Justice Department's decision to charge Boeing and seek a guilty plea.
The decision to charge Boeing comes after it was found to have violated a 2021 agreement that protected the company from prosecution related to the fatal crashes of the 737 MAX aircraft. These two fatal crashes occurred in 2018 and 2019, resulting in the deaths of 346 people.
The decision to pursue criminal charges against Boeing deepens the crisis troubling the aircraft manufacturer, potentially leading to more financial consequences and stricter government oversight.
A guilty plea could also affect Boeing's ability to participate in government contracts, such as important contracts with the U.S. military. Although companies with felony convictions can receive exemptions, it is currently unclear to what extent the DOJ's plea agreement specifically addresses this issue.
