Court Rejects Boeing Plea Deal Tied to 737 Max Crashes

By Evans Momodu
2 minute read


A federal judge has rejected Boeing's plea deal with the Justice Department related to criminal fraud charges stemming from two fatal crashes of its 737 Max aircraft.

These crashes — Lion Air in October 2018 and Ethiopian Airlines in March 2019 — claimed 346 lives and led to global scrutiny of the aircraft’s safety.

Judge Reed O’Connor of the U.S. District Court for the Northern District of Texas raised concerns about the government-appointed monitor included in the plea deal, questioning whether the monitor's selection process would prioritise race-based diversity, equity, and inclusion (DEI) policies over competency.

He stated that the monitor’s selection must be based solely on merit to maintain public confidence in the justice process. The court has given Boeing and the Justice Department 30 days to decide on the next steps.

In a July plea deal, Boeing admitted to conspiring to defraud the government by misleading regulators about the 737 Max’s flight-control system, which was implicated in the crashes. The deal aimed to resolve the case without trial and included a fine of up to $487.2 million.

The Justice Department suggested halving that amount to $243.6 million, crediting Boeing for payments made under a prior agreement.

Victims’ families criticised the original plea deal, calling it a "sweetheart deal" that lacked adequate accountability for Boeing.

Erin Applebaum, an attorney representing a victim’s family, welcomed the court’s decision, emphasizing the need for a revised plea deal that reflects the severity of Boeing's actions.

The plea deal renegotiation comes as Boeing works to restore its reputation following a series of safety crises, including a midair incident in January 2024 when a door burst off a 737 Max 9, violating a previous Deferred Prosecution Agreement with the Justice Department.

Boeing and the Justice Department have yet to comment on the court's decision.
Source: NBC