U.S. prosecutors are recommending to senior Justice Department officials that criminal charges be brought against Boeing after finding the planemaker violated a settlement related to two fatal crashes, two people familiar with the matter said.
The Justice Department must decide by July 7 whether to prosecute Boeing. The recommendation of prosecutors handling the case has not been previously reported. In May, officials determined the company breached a 2021 agreement that had shielded Boeing from a criminal charge of conspiracy to commit fraud arising from two fatal crashes in 2018 and 2019 involving the 737 MAX jet.
Under the 2021 deal, the Justice Department agreed not to prosecute Boeing over allegations it defrauded the Federal Aviation Administration so long as the company overhauled its compliance practices and submitted regular reports. Boeing also agreed to pay $2.5 billion to settle the investigation.