Boeing is set to plead guilty to criminal fraud in connection with the 737 Max crashes, according to the Justice Department.

Boeing has agreed to plead guilty to a criminal fraud charge related to the two fatal crashes of 737 Max jetliners, after the government determined the company had violated a previous agreement that shielded it from prosecution for over three years. This plea deal, which still needs a federal judge’s approval, includes a nearly $250 million fine and a commitment from Boeing to invest at least $455 million in safety improvements.

Federal prosecutors presented Boeing with two choices this week: either enter a guilty plea and pay the fine as part of its sentence, or face trial on the felony criminal charge of conspiracy to defraud the United States.

According to a Department of Justice (DOJ) document filed in a Texas federal court, the plea deal requires Boeing to pay an additional $243.6 million fine. Boeing has also agreed to invest at least $455 million over the next three years to enhance its safety and compliance programs. Additionally, the DOJ will appoint a third-party monitor to oversee Boeing’s compliance, with annual progress reports to be publicly filed with the court.

A guilty plea could jeopardize Boeing’s ability to secure lucrative government contracts, such as those with the US Department of Defense and NASA, although the company could seek waivers. Boeing became susceptible to criminal prosecution after the DOJ found in May that the company had violated a 2021 settlement agreement regarding the fatal crashes.

Prosecutors accused Boeing of misleading regulators who approved the airplane and pilot-training requirements. By pleading guilty, Boeing avoids a contentious trial that could have brought greater public scrutiny to its decisions leading up to the crashes. This deal also facilitates the company’s path forward as it prepares for a new CEO and seeks approval for its planned acquisition of Spirit AeroSystems.

Boeing confirmed to the New York Times and Reuters that it had reached an agreement with the DOJ but declined to provide further comment. The plea deal only addresses Boeing’s wrongdoing prior to the crashes, which resulted in the deaths of all 346 passengers and crew members on two new Max jets. It does not grant Boeing immunity for other incidents, such as the panel that detached from a Max jetliner during an Alaska Airlines flight in January, according to a DOJ official. The agreement also excludes current or former Boeing officials, covering only the corporation itself.

Federal prosecutors alleged that Boeing conspired to defraud the government by deceiving regulators about a flight-control system implicated in the crashes, which occurred in Indonesia in October 2018 and in Ethiopia less than five months later.

The guilty plea will be entered in US district court in Texas. The presiding judge, who has previously criticized Boeing’s “egregious criminal conduct,” can either accept the plea and the proposed punishment or reject the agreement, potentially leading to new negotiations between the DOJ and Boeing.

Relatives of the crash victims were informed of the plea offer a week ago and have indicated their intention to ask the judge to reject it.