Washington, United States

After US prosecutors reportedly told the Department of Justice (DoJ), that Boeing had broken a settlement linked to two deadly crashes of the 737 Max aircraft, the US aerospace firm may now face criminal charges.

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According to media sources, the DoJ officials have until July 7 to determine whether to press criminal charges against Boeing based on the recommendation of the case's prosecutors.

The Department of Justice (DoJ) informed a federal court in Texas last month that Boeing had broken the conditions of a 2021 settlement when the company promised to pay $2.5 billion (£2 billion) in fines and compensation to airline passengers and the relatives of those who perished in two deadly crashes. 

According to the court complaint, Boeing failed to "design, implement, and enforce a compliance and ethics program to prevent and detect violations of the US fraud laws throughout its operations."

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These new accusations would be the most recent wave of accusations stemming from the two crashes. In all, 346 people died in the Boeing 737 Max,  Boeing's best-selling aircraft, crashes that occurred on planes operated by Ethiopian Airlines and Lion Air in Indonesia in late 2018 and early 2019.

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The crash happened because of a new design that automatically lowered the planes' noses to compensate for moving bigger engines forward. The pilots were unaware of a new design. The aircraft was left liable if a single sensor malfunctioned due to the manoeuvring characteristics augmentation system (MCAS).

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Due to the deferred prosecution agreement, the corporation was shielded from a fraud allegation stemming from its alleged failure to disclose to aviation regulators certain details about the operation of the system. "Boeing's employees chose the path of profit over candour," the DoJ stated at the time of the settlement.

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The deal was supposed to expire in January, which would have given Boeing one less thing to worry about. Two days before the settlement's expiration, an Alaska Airlines plane underwent a door panel blowout, which caused Boeing to come under scanner once again for its safety record.

The ultimate decision to press further charges has not yet been taken, according to Reuters. A source stated that Boeing may be charged with more offences in addition to the initial 2021 fraud conspiracy indictment. 

(With inputs from agencies)