Justice Department is said to push Boeing to plead guilty (NYSE:BA)

The U.S. Department of Justice is urging Boeing (NYSE:BA) to plead guilty to a criminal charge after finding the aviation giant violated a settlement over fatal 737 Max crashes in 2018 and 2019 that killed 346 people, Reuters reported Sunday, citing two people familiar with the matter.

The proposed deal includes a $487.2 million financial penalty, but Boeing (BA) would be required to pay half that amount. Prosecutors are giving the company credit for a payment in the previous settlement related to the fatal crashes.

The federal agency was expected to formally offer the plea agreement to Boeing (BA) later in the day, according to the report. Spokespeople for the company and the Justice Department declined to comment to Reuters on the matter.

Justice Department officials explained their decision to family members of crash victims in a call earlier on Sunday.

The agreement would require Boeing (BA) to plead guilty to conspiring to defraud the U.S. Federal Aviation Administration in connection with the fatal crashes. It also would insist on an independent monitor that audits Boeing’s (BA) safety and compliance practices for three years, Reuters reported.

Justice Department officials plan to give Boeing (BA) until the end of the week to respond to the offer. Prosecutors plan to take the company to trial if it refuses to plead guilty, Reuters reported.