A federal judge in Texas has rejected a plea deal that would have allowed Boeing to plead guilty to a felony conspiracy charge and pay a fine for misleading US regulators about the 737 Max jetliner before two deadly crashes. The ruling by US District Judge Reed O’Conner raises uncertainty regarding criminal prosecution of the aerospace giant in connection with the development of its bestselling aircraft. The judge has given Boeing and the Justice Department 30 days to come up with a new plan or potentially face trial.
Many relatives of the 346 people who died in the crashes have been fighting for years for a public trial and more severe punishment for Boeing. The deal that was rejected would have allowed Boeing to plead guilty to defrauding regulators nearly a decade ago without evidence linking the deception to the crashes. The judge’s main concern was a provision in the agreement that required considering race in the selection of an independent monitor overseeing Boeing’s compliance with anti-fraud laws, arguing that competency should be the sole basis for selection.
Legal experts have noted that rejecting a plea deal over diversity, inclusion, and equity policies is rare and raises questions about the balance of power between the court and prosecuting authorities. Boeing has faced significant challenges in recent years, including financial losses, a factory workers strike, layoffs, and a decline in share prices. The company has been struggling to recover from the fallout of the 737 Max crashes and subsequent investigations.
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