Report: Prosecutors recommend DOJ file charges against Boeing

The DOJ could move forward with a new settlement or extend the one from 2021 with Boeing.

U.S. prosecutors are recommending criminal charges against Boeing to the Justice Department, as they found that Boeing violated a settlement related to two fatal crashes involving the 737 MAX jet in 2018 and 2019.

The Justice Department has until July 7 to decide whether to prosecute Boeing, with the recommendation from prosecutors handling the case, according to a report from Reuters. 

The big picture: It was determined that Boeing breached a 2021 agreement that shielded the company from a criminal charge of conspiracy to commit fraud in relation to the crashes, despite a $2.5 billion settlement and compliance overhaul.

  • Boeing has disputed the Justice Department’s determination that it violated the settlement and declined to comment on the recommendation for criminal charges.
  • The potential criminal charges could deepen the ongoing crisis at Boeing, especially considering the recent scrutiny from regulators and lawmakers after an incident involving one of its jets mid-flight.

Go deeper: In addition to financial penalties, the Justice Department could propose new, stricter terms or extend the 2021 settlement, including the possibility of installing a third-party monitor and requiring the company to admit its wrongdoing by pleading guilty.

  • The Justice Department and Boeing are currently in discussions over a potential resolution, with no final decisions reached yet.
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