In a significant ruling, a federal judge in Texas has dismissed a plea agreement between Boeing and the Department of Justice (DOJ) in relation to two criminal negligence cases tied to fatal 737 MAX plane crashes.
The dismissal was based on the agreement's focus on diversity, equity, and inclusion (DEI), which the judge deemed against the public interest. The plea agreement stipulated that an independent monitor would supervise Boeing's practices. However, Judge Reed O'Connor of the Northern District of Texas contended that the independent monitor's appointment should be merit-based, not diversity-focused, especially in a case of such gravity.
According to The Post Millennial, Judge O'Connor expressed his concerns about the selection criteria on Thursday. "The plea agreement requires the parties to consider race when hiring the independent monitor," he stated. He further criticized the plea agreement for marginalizing the court's role in the selection and monitoring of the independent monitor, deeming these provisions inappropriate and against public interest. He emphasized, "In a case of this magnitude, it is in the utmost interest of justice that the public is confident this monitor selection is done based solely on competency."
The legal dispute originated following two 737 MAX crashes that tragically claimed 346 lives. The case was reignited earlier this year when a fuselage panel failed on the same type of aircraft in January. In May, the DOJ accused Boeing of violating its corporate probation due to fraud conspiracy charges linked to the 2018 and 2019 disasters. The Wall Street Journal reported that Boeing pleaded guilty to the charges in July at the prosecutors' behest.
Judge O'Connor also voiced his disapproval of the DOJ's oversight of the probationary agreement, finalized in the waning days of the first Trump administration. Boeing conceded that two former employees had misled the FAA about a new flight-control feature on the 737 MAX, which was not designed to operate under normal flight conditions. In 2021, Boeing agreed to a $244 million fine as part of a settlement.
The settlement required Boeing to provide the DOJ with a report detailing improvements to its compliance program. However, Judge O'Connor expressed his dissatisfaction with the government's compliance enforcement efforts, stating, "It is fair to say the government's attempt to ensure compliance has failed." He suggested that the monitor should report to the court, not the DOJ, indicating a shift in oversight that could have significant implications for future corporate probation agreements.
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