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A U.S. judge rejected Boeing’s plea deal stemming from the twin 737 Max crashes, criticizing its use of diversity, equity and inclusion considerations in selecting a supervisor to oversee compliance with the agreement.
Judge Reed O’Connor in North Texas said the inclusion of DEI Considerations in choosing a corporate monitor for Boeing would “undermine confidence” that the selection was based on competence.
The ruling extends a chapter in boeingIt is the story that the company wants to put to rest, as it will continue to face the families of those killed in the 2018 and 2019 accidents in court. Since then, the company has been struggling, losing money and attracting scrutiny from regulators, legislators and the general public.
The judge also said the July agreement The provisions “wrongly marginalize” the court in choosing and supervising the monitor. Boeing had no immediate comment on the judge’s decision. The Justice Department said it was reviewing the opinion.
The ruling introduces a hot-button culture war issue in the United States into one of the most important corporate criminal proceedings in the country’s history. Conservatives have begun attacking corporate and government policies that promote racial diversity, many of which were adopted four years ago after a police officer killed George Floyd, a Black Minneapolis resident.
Boeing agreed in January 2021 pay 2.5 billion dollars defer prosecution on a single count of fraud related to the accidents. The charge arose from misleading federal aviation regulators about the safety of a flight control system on the Max. The system was later implicated in accidents, five months apart, that killed a total of 346 people.
the justice department returned to deferred prosecution this year after a door panel exploded on a Max at 16,000 feet during a commercial flight. Prosecutors argued that Boeing failed to meet the terms of its previous agreement.
The company pleaded guilty in July and agreed to the appointment of a corporate monitor, but victims’ families questioned both Boeing and prosecutors about the role and selection of the monitor.
O’Connor said the magnitude of the case against Boeing required “that the public trust that the selection of this monitor is made based solely on competence. The parties’ DEI efforts only serve to undermine this trust.”
O’Connor also said that if Boeing had violated the 2021 deferred prosecution agreement, “the government’s attempt to ensure compliance has failed,” and the court, rather than prosecutors, should have a larger role in selecting and supervision of Boeing’s corporate supervisor.
Boeing and prosecutors have 30 days to consult and update the court on how they plan to proceed.
Families of crash victims opposed DEI considerations and asked O’Connor to block the deal worked out this summer, saying it was too lenient on the company. Lawyers for the victims’ families hailed Thursday’s ruling as a victory.
Erin Applebaum, one of the attorneys representing the families, called the ruling “an excellent decision” and said her clients “anticipate a significant renegotiation of the plea agreement that incorporates terms truly proportionate to the severity of Boeing’s crimes.” .