05:45 AM EDT, 05/15/2024 (MT Newswires) -- (Updates with a statement from Boeing ( BA ) in the third and fifth paragraphs.)

Boeing ( BA ) was accused by the US government of failing to abide by the terms of a 2021 deal that protected it from criminal prosecution over two fatal 737 MAX plane crashes, news outlets reported Tuesday.

The US Department of Justice said in a court filing in Texas that the planemaker had failed to live up to promises in the deferred prosecution agreement to improve its operations and workplace ethics to prevent violations of fraud laws. The alleged breach could pave the way for criminal prosecution of Boeing ( BA ) in the 2018 and 2019 plane crashes that left 346 people dead, the reports said.

In a statement to MT Newswires, Boeing ( BA ) acknowledged it received a communication from the Justice Department regarding the deferred prosecution.

The Justice Department ordered Boeing ( BA ) to respond by June 13 with details on the steps it has taken to comply with the previous ruling and said it plans to decide whether to pursue a criminal case by July 7, according to court documents cited by Reuters.

Boeing ( BA ) said it "honored the terms" of the 2021 agreement and will respond to the Justice Department's allegation. "We will engage with the Department with the utmost transparency, as we have throughout the entire term of the agreement," the company said.

The Justice Department did not immediately reply to MT Newswires' request for comment.

Boeing ( BA ) shares were down more than 1% in Wednesday premarket activity.

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