A federal judge has rejected a plea agreement between Boeing and the U.S. government concerning the fatal crashes of two 737 Max jets in 2018 and 2019. The crashes, which occurred in Indonesia and Ethiopia, resulted in the deaths of 346 people. The plea deal, which involved Boeing pleading guilty to conspiracy to defraud the United States, was criticized for its leniency by the victims’ families.
Judge Reed O’Connor of the Northern District of Texas cited issues with the selection process for an independent monitor to oversee Boeing’s compliance and safety improvements as a key reason for rejecting the deal. He objected to the Justice Department’s control over the monitor’s selection and criticized the inclusion of diversity considerations in the process. O’Connor emphasized that the public must have confidence in the monitor’s competency, not in diversity and inclusion efforts.
The plea agreement proposed a $487.2 million fine for Boeing, a sum that the families of the victims considered insufficient. They argued that the deal failed to hold Boeing accountable for the design flaws that led to the crashes. The victims’ families want Boeing executives charged with crimes and the company to pay over $24 billion in fines.
The Justice Department and Boeing now have 30 days to update the court on their next steps. The rejection of the plea deal could lead to a renegotiation that demands greater accountability from Boeing.
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