Reuters
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Boeing (BA.N), opens new tab has agreed to plead guilty to a criminal fraud conspiracy charge to resolve a U.S. Justice Department investigation linked to two 737 MAX fatal crashes, a government official said on Sunday.
The plea, which requires a federal judge's approval, would brand the planemaker a convicted felon. Boeing will also pay a criminal fine of $243.6 million, a Justice Department official said.
The charge relates to two 737 MAX crashes in Indonesia and Ethiopia over a five-month period in 2018 and 2019 that killed 346 people and prompted the families of the victims to demand that Boeing face prosecution.
A guilty plea potentially threatens the company's ability to secure lucrative government contracts with the likes of the U.S. Defense Department and NASA, although it could seek waivers. Boeing became exposed to criminal prosecution after the Justice Department in May found the company violated a 2021 settlement involving the fatal crashes.