According to two individuals familiar with the matter, U.S. prosecutors have recommended that senior officials of the Justice Department pursue criminal charges against Boeing, alleging that the aircraft manufacturer violated a settlement agreement related to two fatal crashes.
The Justice Department must decide whether to prosecute Boeing by July 7. The prosecutors' recommendation had not been previously reported.
In May of this year, officials determined that Boeing had breached a 2021 agreement. That agreement was intended to shield Boeing from criminal conspiracy and fraud charges stemming from the deadly crashes involving 737 MAX aircraft in 2018 and 2019.
Under the 2021 agreement, the Justice Department agreed not to prosecute Boeing for defrauding the Federal Aviation Administration, provided that Boeing improved its compliance measures and submitted regular reports. Boeing also agreed to pay $2.5 billion to resolve the investigation.
Boeing declined to comment on this matter. The company had previously stated that it has "complied" with the terms of the 2021 settlement, which was a three-year deferred prosecution agreement. Boeing informed the Justice Department that it disagreed with the department's determination of a breach, Reuters reported this month.
A spokesperson for the Justice Department also declined to comment.
According to the two sources, discussions are ongoing about a possible resolution, but there is no guarantee that officials will file charges. The internal discussions within the Justice Department are still in progress and no final decision has been made.
