US Court Rejects Boeing-DOJ Plea Deal Over Monitor Selection Process

A US District Court in Texas has rejected a $487 million plea deal between Boeing and the Department of Justice (DOJ), citing concerns over a diversity and inclusion (DEI) provision tied to the mandatory appointment of an independent safety monitor.

Justice Reed O’Connor ruled that the provision requiring consideration of race in hiring the monitor was inappropriate and against public interest. The court emphasized the need for public confidence in Boeing’s ethics and anti-fraud compliance program during its probation. “The selection of a monitor must be based solely on competency to restore trust,” O’Connor stated, adding that the DEI provision undermined the integrity of the process.

The plea deal, signed in July 2024, faced opposition from families of victims of the 2018 and 2019 Boeing 737-8 crashes, who labeled it a “sweetheart deal” that inadequately held Boeing accountable. The families, who sought up to $24.8 billion in damages, criticized the agreement’s lax monitoring provisions.

While the court rejected the deal on procedural grounds, it did not address the settlement amount. Lawyers for the families welcomed the ruling, calling it “an important victory.” Attorney Paul Cassell said, “This order should lead to a significant renegotiation of the plea deal, focusing on accountability and future safety.”

The initial plea deal included $243.6 million in penalties, an additional $243.6 million in previous settlements, and a $455 million investment in safety compliance. The DOJ and Boeing now have 30 days to revise the agreement.

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Sources: AirGuide Business airguide.info, bing.com, ch-aviation.com