Boeing Gains Despite Prosecutors' Push For Criminal Charges

Zinger Key Points
  • The Justice Department needs to decide by July 7 whether or not it will prosecute Boeing.
  • The Justice Department has agreed not to prosecute Boeing if it overhauled compliance practices and filed regular reports.

The Boeing Company BA stock began Monday on positive footing despite U.S. prosecutors recommending the Department of Justice bring criminal charges against the plane manufacturer on the grounds the company violated a settlement tied to two deadly crashes.

The Justice Department needs to decide by July 7 whether it will prosecute the company, Reuters reports.

DOJ officials concluded in May that Boeing breached a 2021 agreement that protected the company from a criminal charge of conspiracy to commit fraud related to two fatal crashes involving the 737 MAX jet.

Also read: New Boeing Whistleblowers Speak Out – Death Of Colleagues ‘Doesn’t Add Up’

The Justice Department agreed not to prosecute Boeing over allegations it defrauded the Federal Aviation Administration so long as the company revamped its compliance practices and filed regular reports. Boeing also agreed to pay $2.5 billion to settle the investigation.

Boeing insists it has “honored the terms” of the 2021 settlement. The settlement had a three-year term and is known as a deferred prosecution agreement. Boeing told the Justice Department it disagrees with its determination that the company violated the deal, Reuters reported this month.

Boeing and the Justice Department are in talks over a potential resolution to the investigation. There is no guarantee officials will move forward with charges, Reuters reported citing sources. The internal Justice Department deliberations remain ongoing and no final decisions have been reached.

Price Action: Boeing picked up 1.5%, trading at $179.21 per share at last check on Monday.

Now Read: What’s Going On With Boeing’s Shares On Tuesday

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Posted In: LegalTop StoriesIntraday Update737 MAXFederal Aviation AdministrationStories That MatterU.S. Department of Justice
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