04:52 AM EDT, 07/01/2024 (MT Newswires) -- Boeing ( BA ) will be charged with criminal fraud over two fatal crashes of its 737 MAX planes and will be urged by the US Justice Department to plead guilty or face trial, Reuters reported Sunday, citing people familiar with the matter.

The proposed plea deal includes a $487.2 million penalty, half of which Boeing ( BA ) paid in a previous settlement, according to the report. The company may also face a probationary period of three years during which it will be subjected to safety audits by outside inspectors, sources told Reuters.

Federal officials will reportedly give the company until the end of the week to respond to the offer.

The Justice Department charge comes after allegations that Boeing ( BA ) violated a 2021 deal over the 2018 and 2019 737 MAX crashes, which killed 346 people.

Boeing ( BA ) and the Justice Department did not immediately reply to MT Newswires' requests for comment.

(Market Chatter news is derived from conversations with market professionals globally. This information is believed to be from reliable sources but may include rumor and speculation. Accuracy is not guaranteed.)

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