Boeing may avoid a high-stakes criminal trial over the deadly 737 Max crashes as U.S. prosecutors weigh a tentative nonprosecution agreement, people familiar with the matter told Reuters.

The development comes just a month after the U.S. Justice Department said the aviation giant had agreed to plead guilty to defrauding regulators — a move that now appears to be in flux.

During a private meeting on Friday, prosecutors informed relatives of crash victims that Boeing no longer intends to admit guilt, citing complications after a judge previously rejected a similar deal.

The Boeing 737 Max crisis began with two deadly crashes occurring within six months: Lion Air Flight 610 in October 2018 and Ethiopian Airlines Flight 302 in March 2019, which together claimed 346 lives.

Investigators linked both accidents to a flight-control system called MCAS, which repeatedly forced the planes' noses down.

Boeing was accused of failing to fully disclose the system to pilots and regulators.

A criminal fraud charge, filed in 2021, accused Boeing of misleading the Federal Aviation Administration (FAA) during the Max's certification process.

Prosecutors are now said to be deliberating whether to finalise the nonprosecution agreement that would require court approval or proceed with the scheduled June 23 trial.

As of now, no final decision has been taken, and formal negotiations over terms have not begun. Both Boeing and the DOJ declined to comment on the ongoing discussions.

The 737 Max crisis has already cost Boeing billions and led to a shakeup at the top.

After a global grounding in 2019, and again briefly in early 2024 after a door panel blew out mid-flight, scrutiny of Boeing’s safety practices only intensified.

In May, the DOJ formally alleged that Boeing had violated a previous 2021 deferred prosecution agreement, setting the stage for potential new penalties or litigation.