Judge says no to DOJ Boeing plea deal over undue emphasis on DEI requirements

A federal judge in Texas struck down Boeing's plea agreement with the Department of Justice relating to two criminal negligence cases involving fatal 737 MAX plane crashes because of the deal's emphasis on diversity, equity, and inclusion (DEI). The agreement requires an independent monitor to oversee Boeing's practices, but the judge said that "diversity-and-inclusion provision renders the plea agreement against the public interest." 

Judge Reed O'Connor of the Northern District of Texas raised concerns with the selection criteria, arguing on Thursday that the independent monitor should be appointed based on merit and not diversity, particularly when it comes to a case of this magnitude. 

"The plea agreement requires the parties to consider race when hiring the independent monitor," the judge ruled.  "Additionally, the plea agreement marginalized the Court in the selection and monitoring of the independent monitor. These provisions are inappropriate and against the public interest." He later added, "In a case of this magnitude, it is in the utmost interest of justice that the public is confident this monitor selection is done based solely on competency."

The legal battle commenced in the aftermath of two 737 MAX crashes, which resulted in the loss of 346 lives. The lawsuit was reignited earlier this year after a fuselage panel failed on the same type of aircraft in January. In May, the aerospace company was accused by the Department of Justice of violating its corporate probate pursuant to fraud conspiracy charges that were associated with the 2018 and 2019 disasters. Boeing entered a guilty plea to the charges in July at the request of prosecutors, per the Wall Street Journal.

O'Connor also expressed his dissatisfaction with the Justice Department's supervision of the probationary agreement, which was reached in the final days of the first Trump administration. Boeing acknowledged at the time that two former employees had deceived the FAA regarding a new flight-control feature on the 737 MAX that was not intended to operate in normal flight conditions. In 2021, Boeing agreed to pay a $244 million fine after reaching a settlement.

The resolution mandated that Boeing submit a report to the Justice Department regarding improvements to its compliance program. "It is fair to say the government's attempt to ensure compliance has failed," Judge O'Connor wrote, explaining that the monitor should report to the court instead of the DOJ.