Boeing is facing possible criminal prosecution over two fatal 737 Max crashes which killed 346 people.
The US Justice Department said the plane maker had breached the obligations of a 2021 agreement that shielded the plane maker from prosecution following the crashes in 2018 and 2019.
The Justice Department said in a court filing that Boeing had failed to "design, implement, and enforce a compliance and ethics program to prevent and detect violations of the US fraud laws throughout its operations."
In January Boeing came under more scrutiny when a panel was ripped off a new 737 Max 9 jet, just two days before the 2021 agreement shielding the company expired.
Officials will now consider steps the plane maker has taken to address and remediate violation of the pact before deciding whether to prosecute.
The Justice Department directed Boeing to respond by June 13 and intends to decide whether to take action against Boeing by July 7, the filing said.
In response Boeing said it believed it had honoured the terms of the agreement.
The company said in a statement: “We will engage with the Department with the utmost transparency, as we have throughout the entire term of the agreement, including in response to their questions following the Alaska Airlines 1282 accident."
Boeing's ongoing crisis has already resulted in a management shakeup and government investigations.
During a US Senate hearing in April, a Boeing engineer testified the company took dangerous manufacturing shortcuts with certain planes and sidelined him when he raised safety concerns, claims the company disputes.
Justice Department officials are set to meet with family members of the victims of the fatal crashes and their lawyers on May 31 to discuss their decision, according to Reuters.
"This is an important first step towards holding Boeing accountable for the deaths of 346 passengers and crew on the two flights," Paul Cassell, a lawyer representing victims' family members, told the news agency.
"But now the Justice Department needs to move this prosecution forward, vigorously and effectively towards a conviction."
In January 2021, Boeing agreed to pay $2.5 billion to resolve a criminal investigation into the company's conduct surrounding the previous fatal crashes.
The company agreed to compensate victims' relatives and overhaul its compliance practices as part of the deal with prosecutors.
