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The Boeing Company (NYSE:BA) is in discussions with the U.S. Department of Justice to resolve potential charges related to two deadly crashes involving its 737 Max jetliners, Bloomberg News reported, citing people familiar with the negotiations.
They added that an announcement in this regard could be released as early as next week. A settlement is expected to include installing a corporate monitor on the company, according to the people who chose to remain anonymous given the confidential nature of the discussions.
A 2021 deferred-prosecution agreement between Boeing (BA) and DoJ is said to be at the center of discussions. Early this week, Reuters reported that prosecutors are recommending to senior DoJ officials that the aircraft maker face criminal charges for allegedly violating the deal.
Under the three-year deal, Boeing (BA) avoided a criminal charge over conspiracy to commit fraud pertaining to the 2018 and 2019 crashes. In exchange, the company agreed to pay a $2.5B fine, improve its internal compliance, and submit regular reports.
At the time, the DoJ didn’t impose an outside party to monitor the company’s compliance, a measure widely considered the strictest settlement term.