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Sources: Boeing closes deal with prosecution to avoid guilty plea in 737 MAX crash case

Boeing and U.S. prosecutors have tentatively reached an agreement to not prosecute in a fraud case stemming two fatal crashes of the 737 MAX that killed 346 passengers, according to people familiar with this matter.

The agreement will prevent a trial scheduled for June 23, where the planemaker is accused of misleading U.S. regulators regarding a critical flight control system in the 737 MAX jet, which is its best-selling model. The agreement would need to be approved by a judge.

If approved, the agreement would be a major blow to the families of those who have lost loved ones in the crashes, and to the prosecutors who have been pressing to bring the U.S. aircraft manufacturer to trial.

Sources said that prosecutors informed family members of crash victim victims on Friday at a meeting that Boeing had no longer agreed to enter a guilty plea in the case. Prosecutors told family members that Boeing's position changed after a December judge rejected an earlier plea agreement.

A DOJ official stated that officials were still debating whether they should proceed with a non-prosecution agreement, or bring Boeing to trial. The official informed family members that no final decision had been made and that Boeing and DOJ officials hadn't yet exchanged documents to negotiate the final details of a nonprosecution deal.

Boeing and DOJ did not comment.

According to one source, Paul Cassell said, "I think this deal is terrible."

Nadia Milleron lost her daughter to one of the Boeing plane accidents in 2019. She questioned the DOJ and Attorney General Pam Bondi on how they could justify a deal for a repeat offender.

The U.S. District Court Reed O'Connor rejected an earlier plea agreement in Texas in December. He cited a clause in the agreement that dealt with the selection of a monitor as being discriminatory and not inclusive.

The case was extended to the Trump administration after it reorganized the Justice Department. Boeing accepted the plea agreement during the last months of the Biden Administration.

Boeing agreed in July to plead guilty on a criminal fraud charge following the two fatal 737 MAX crash in Indonesia and Ethiopia spanning from 2018 to 2019. The company will pay a maximum fine of $487.2 Million. (Reporting from Mike Spector in New York; David Shepardson, Christine Prentice, and Allison Lampert, in Washington; and Daniel Wallis, and Chizu Nomiyama, in Montreal)

(source: Reuters)