US prosecutors are urging senior officials at the Justice Department to pursue criminal charges against Boeing, following findings that the aircraft manufacturer breached a settlement related to two fatal crashes, according to sources familiar with the matter.

The Justice Department has until July 7 to decide whether to proceed with the prosecution, a recommendation not previously disclosed by officials handling the case.

In May, investigators determined that Boeing violated terms of a 2021 agreement aimed at shielding the company from criminal charges related to alleged fraud involving the 737 MAX jets that crashed in 2018 and 2019. The settlement required Boeing to revamp its compliance practices, submit regular reports, and pay a $2.5 billion settlement.

Boeing has maintained that it adhered to the terms of the 2021 settlement, disputing the Justice Department's conclusion of a violation.

Discussions between Boeing and Justice Department officials are ongoing regarding potential resolutions to the investigation, with no certainty yet on whether charges will proceed, according to the sources.

If charges are filed, it would deepen Boeing's ongoing challenges, which have intensified following incidents involving its aircraft, including a recent mishap involving an Alaska Airlines flight just before the 2021 settlement expired.

The specific nature of the potential criminal charges remains unspecified, although sources suggest they could extend beyond the initial fraud conspiracy charge from 2021.

Alternatively, the Justice Department might opt to extend the 2021 settlement or propose new, stricter terms as an alternative to prosecution, the sources noted.

In addition to financial penalties, stringent settlements typically involve third-party compliance monitoring. Prosecutors could also require Boeing to admit wrongdoing through a guilty plea, potentially leading to additional business restrictions that Boeing fears could jeopardize lucrative government contracts.

Families of the victims from the 737 MAX crashes have criticized the 2021 agreement, urging prosecutors to pursue tougher measures against Boeing. At a Senate hearing, Boeing's CEO acknowledged safety shortcomings and apologized to the victims' families.

Last week, families pressed for a substantial fine of nearly $25 billion and urged prosecutors to proceed with criminal charges against the aerospace giant.

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