US prosecutors recommend Boeing be criminally charged after violating fatal crash regulations

U.S. prosecutors are recommending to top Justice Department officials that criminal charges be filed against Boeing after finding the aircraft maker violated an agreement relating to two fatal crashes, according to two people familiar with the matter.

The Justice Department must decide by July 7 whether to sue Boeing.

The recommendation of prosecutors in the case has not been previously reported.

In May, officials determined the company violated a 2021 agreement that had shielded Boeing from a criminal charge of conspiracy to commit fraud stemming from two fatal crashes in 2018 and 2019 involving the 737 MAX jet.

As part of the 2021 settlement, the Justice Department agreed not to prosecute Boeing over allegations that it defrauded the Federal Aviation Administration, provided the company reviews its compliance practices and submits reports regular.