The U.S. Justice Department will criminally charge Boeing with fraud over two fatal crashes and ask the planemaker to plead guilty or face a trial, two people familiar with the matter say.

Seattle

Boeing is set to face criminal charges over allegations of fraud following two fatal crashes involving its 737 MAX jets. Sources indicate that the US Department of Justice has decided to pursue legal action and will ask Boeing to plead guilty or face a trial. These crashes, which occurred in 2018 and 2019, resulted in the deaths of 346 people and were later attributed to a design flaw in the aircraft, since corrected.

Boeing had previously agreed to a deferred prosecution deal, which protected the company from criminal charges in exchange for compensating victims' families and implementing compliance improvements. However, following a mid-air incident with another MAX jet this year, prosecutors determined that Boeing had not fully complied with the terms of the deal—a claim Boeing disputes.

Reportedly, Boeing has a limited timeframe to decide whether to plead guilty or go to trial. A plea might result in a new financial penalty and the imposition of independent monitoring. However, pleading guilty could lead to restrictions on Boeing's ability to secure government contracts, although a plea deal might mitigate this risk.



U.S. to criminally charge Boeing over 737 MAX crashes

Boeing is set to face criminal charges over fraud following the two fatal crashes of its 737 MAX jets some years ago. Reuters sources said Sunday that the US Department of Justice had decided on the course of action. There was no comment on the report from officials or the company. The deadly crashes took place in 2018 and 2019, killing 346 people. They were later traced to a design flaw in the jets, which has since been fixed. Boeing agreed a deferred prosecution deal, which shielded it from criminal charges. That was in return for compensating victims' families and taking steps to improve compliance. But in January this year, a mid-air blowout on another MAX jet revived concern over how well the planes are made. Prosecutors subsequently concluded that Boeing had not honoured the terms of the deferred prosecution deal, something the company disputes. Now Boeing will reportedly have until the end of the week to plead guilty or face a trial. It is expected to see a new financial penalty and will have to submit to independent monitoring. Pleading guilty may not be an attractive move for the firm, which is also a big maker of military aircraft and other defence gear. Companies with felony convictions can face restrictions on government contracts, though it's possible a plea deal could include terms that avoid such an outcome.

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