Boeing (BA) is facing strong opposition from families of victims killed in two fatal 737 MAX crashes as it negotiates a tentative nonprosecution agreement with the US Department of Justice, Reuters reported Saturday, citing a lawyer.

The report said the proposed deal, revealed in a Friday meeting with families, would allow Boeing to avoid trial and a felony conviction over allegations it misled regulators about a faulty flight control system tied to the 2018 and 2019 crashes that killed 346 people.

Family attorney Paul Cassell said the families will object, arguing the agreement fails to hold Boeing fully accountable for what has been called the "deadliest corporate crime in US history", according to Reuters.

The DOJ has not yet finalized the deal and says it will consider family input before deciding whether to proceed or take Boeing to trial, the report said.

As part of the potential agreement, Boeing would plead guilty to fraud conspiracy and pay up to $487.2 million in fines, along with a proposed $444.5 million into a crash victims' fund that would be divided evenly per crash victim on top of $500 million previously paid in 2021, Reuters reported, citing details shared by the DOJ during the meeting.

Boeing did not immediately respond to MT Newswires' request for comment.

(Market Chatter news is derived from conversations with market professionals globally. This information is believed to be from reliable sources but may include rumor and speculation. Accuracy is not guaranteed.)