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According to DOJ officials speaking to Reuters, US prosecutors are recommending criminal charges against Boeing following violations of a settlement related to two fatal 737 MAX crashes.

What’s going on:
The US Department of Justice (DOJ) faces a July 7 deadline to decide whether to prosecute Boeing after prosecutors handling the case found the company had breached a 2021 agreement. This agreement had initially protected Boeing from a conspiracy to commit fraud charge, provided the company complied with specific terms, including compliance overhauls and regular reporting. Boeing had also paid $2.5 billion to settle the initial investigation.

Criminal charges could significantly impact Boeing, which has been under intense scrutiny since a mid-flight incident involving an Alaska Airlines jet in January, just before the settlement’s expiration. The charges under consideration may extend beyond the original fraud conspiracy charge, and the DOJ might alternatively extend the settlement or propose stricter terms.

Lawyers for the crash victims’ families have called on the Justice Department to impose a $25 billion fine on Boeing and increase federal regulation on the planemaker. In addition, they insist that a criminal prosecution is necessary.

A guilty plea from Boeing could jeopardize its significant government contracts, especially with the Department of Defense, which gives the company billions of dollars every year.