A federal judge in Texas has rejected a plea deal between Boeing and the Justice Department related to the two fatal 737 MAX crashes, criticizing the agreement’s focus on diversity in the selection of a compliance monitor.
U.S. District Judge Reed O’Connor ruled that the plea deal, which included a $244 million fine and continued probation for Boeing, improperly limited the court’s authority and inappropriately emphasized diversity when choosing an independent monitor to oversee the company’s safety practices.
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“These provisions are inappropriate and against the public interest,” O’Connor stated in his ruling.
The Justice Department had argued for considering race and diversity in the monitor selection process, but O’Connor found their reasoning unconvincing. He also expressed concerns about the effectiveness of the Justice Department’s oversight of Boeing’s probation, suggesting that the appointed monitor should report directly to the court instead.
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This decision comes amid renewed scrutiny of Boeing’s safety record following a fuselage panel blowout on a 737 MAX in January. The Justice Department accused Boeing of violating its probation terms in May, further highlighting concerns about the company’s commitment to safety.
Boeing has faced numerous challenges in recent months, including financial setbacks, union strikes, and ongoing safety concerns. The company recently dissolved its diversity, equity, and inclusion (DEI) division and announced significant job cuts as part of a restructuring effort.
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