Topline
A federal judge on Thursday rejected a plea deal between Boeing and the Justice Department, after the aerospace firm agreed to plead guilty to a fraud charge and pay more than $243 million to resolve cases linked to two fatal plane crashes, killing a combined 346 people in 2018 and 2019, after the victims’ family members opposed the agreement.
The aerospace firm had agreed to plead guilty to a fraud charge linked to two crashes that killed … [+]
Key Facts
Judge Reed O’Connor rejected Boeing’s plea agreement, citing criticism from victims’ family members that Boeing’s deal to have an independent monitor oversee its compliance and safety programs was a “sweetheart deal,” according to a court filing Thursday.
In July, Boeing agreed to plead guilty to a fraud conspiracy charge, pay a fine of $243.6 million, invest about $455 million in compliance and safety programs and implement a third-party monitor to track the company’s compliance with regulations.
The agreement had improperly required prosecutors to consider diversity and inclusion when selecting the monitor, a consideration that minimized the position’s role, O’Connor argued, suggesting “these provisions are inappropriate and against the public interest.”
O’Connor also disagreed with the monitor answering to the Justice Department rather than the court, saying the provision would “erroneously marginalize” the court.
Boeing did not immediately respond to a request for comment.
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What To Watch For
O’Connor gave Boeing and the Justice Department 30 days to update the court on how they plan to proceed in the case.
This is a developing story.
