The Justice Department has reached a deal with Boeing that will allow the airplane giant to avoid criminal prosecution for allegedly misleading U.S. regulators about the 737 Max jetliner before two of the planes crashed and killed 346 people, according to court papers filed Friday.
Under the "agreement in principle," which still needs to be finalized, Boeing would pay or invest more than 1.1 billion, including an additional 445 million for the crash victims' families, the Justice Department said.
In return, the department has agreed to dismiss the fraud charge against Boeing, allowing the manufacturer to avoid a possible criminal conviction that could have jeopardized the company's status as a federal contractor, according to experts.
"Ultimately, in applying the facts, the law, and Department policy, we are confident that this resolution is the most just outcome with practical benefits," a Justice Department spokesperson said in a statement.
"Nothing will diminish the victims' losses, but this resolution holds Boeing financially accountable, provides finality and compensation for the families and makes an impact for the safety of future air travelers."