WASHINGTON (AP) — The Justice Department has reached a deal with Boeing that will allow the company 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.

The U.S. Justice Department said on Friday it has struck a deal in principle with Boeing to allow it to avoid prosecution in a fraud case stemming from two fatal 737 MAX plane crashes that killed 346 people,

As part of the deal, Boeing will avoid an upcoming fraud trial that could have resulted in the US aviation giant and defence contractor being labelled a felon. The deal includes the company admitting to obstructing federal aviation officials and paying $1.1 billion in fines.