09:12 AM EDT, 05/16/2024 (MT Newswires) -- (Updates with attribution to original Justice Department letter and additional quote from the letter throughout.)

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.

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 Justice Department said.

"For failing to fulfill completely the terms of and obligations under the deferred prosecution agreement, Boeing ( BA ) is subject to prosecution by the United States for any federal criminal violation of which the United States has knowledge," the breach notice said.

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.

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

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