11:47 AM EDT, 07/08/2024 (MT Newswires) -- Boeing ( BA ) has in principle agreed to plead guilty to a fraud conspiracy charge in connection with two fatal 737 Max crashes, according to a court filing on Sunday.

The agreement in principle holds Boeing ( BA ) accountable for "material misstatements" to the Federal Aviation Administration related to the Lion Air flight crash in 2018 and the Ethiopian Air flight crash in 2019, the US government said in a filing with the District Court for the Northern District of Texas.

The plane manufacturer agreed to pay an additional $243.6 million in criminal penalty and invest at least $455 million in its safety and compliance programs, according to the filing.

"We can confirm that we have reached an agreement in principle on terms of a resolution with the Justice Department, subject to the memorialization and approval of specific terms," a spokesperson for Boeing ( BA ) told MT Newswires in an email on Monday.

In May, the Department of Justice reportedly said in a court filing in Texas that Boeing ( BA ) breached the terms of a 2021 deal that protected it from criminal prosecution over the two plane crashes. The DOJ didn't immediately respond to a request for comment on Monday.

Shares of the aircraft manufacturer have declined 27% so far this year, but increased 2.4% in Monday's trading session.

Boeing ( BA ) and the government are "proceeding expeditiously" to document the plea deal, and plan to file the agreement with the court by July 19, according to the filing. However, the families of the crash victims plan to oppose the deal, with the government requesting the court to delay a trial scheduling order until at least Friday, the filing showed.

The plane maker will serve a probation period and be supervised by an independent compliance monitor for three years, according to the court filing.

The Federal Aviation Administration launched an investigation into Boeing ( BA ) in January after a 737 Max 9 operated by Alaska Air (ALK) suffered a mid-air panel blowout. Boeing ( BA ) recently agreed to buy back Spirit AeroSystems (SPR) in an $8.3 billion deal.

In April, the company reported lower first-quarter revenue on an annual basis as it slowed down production of its 737 models to improve quality issues. Chief Executive Dave Calhoun will step down at the end of the year.

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