US prosecutors recommend Justice Dept. criminally charge Boeing

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U.S. prosecutors are urging the Justice Department to bring criminal charges against Boeing, alleging the company breached a 2021 settlement related to two fatal 737 MAX crashes, insiders told Reuters. The decision, which must be made by July 7, hinges on Boeing’s alleged violation of the deferred prosecution agreement that initially shielded the company from fraud conspiracy charges.

The 2021 settlement required Boeing to overhaul its compliance practices and pay $2.5 billion, which Boeing claims it has honored. However, in May, officials found the company had breached this agreement. Discussions between Boeing and the Justice Department are ongoing, with potential resolutions ranging from extending the settlement to imposing stricter terms or new charges.

Boeing faces intensified scrutiny following an incident on January 5, two days before the settlement expired, involving an Alaska Airlines jet. Relatives of crash victims have criticized the initial agreement and are advocating for a $25 billion fine and criminal prosecution. Boeing, while open to financial penalties and compliance monitoring, views a guilty plea as potentially damaging to its U.S. government contracts.

Source: Reuters

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