US Judge Rejects Boeing Plea Agreement Over Fatal Max Crashes

A plea agreement for Boeing, intended to resolve a case linked to two deadly crashes of its aircraft, has been rejected by a US judge. The aerospace manufacturer had reached an agreement with the US government in July to plead guilty to one count of criminal fraud, undergo independent monitoring, and pay a $243 million (£191 million) fine. However, Judge Reed O’Connor invalidated the deal on Thursday, stating that it undermined the court and that diversity requirements for hiring the monitor were “contradictory.” Family members of the 346 individuals killed in the crashes welcomed the ruling, characterizing the plea arrangement as a “get-out-of-jail-free card for Boeing.” The Department of Justice indicated it was reviewing the decision. Boeing offered no immediate comment. In his decision, Judge O’Connor asserted that the government’s prior years of supervising the company had “failed.” He wrote, “At this point, the public interest requires the court to step in.” He noted that the proposed settlement did not mandate Boeing to adhere to the monitor’s suggestions and allowed the company input in choosing a candidate. These concerns had also been voiced by some families of the victims, who had denounced it as a “sweetheart” arrangement that failed to adequately hold the firm responsible for the fatalities. Judge O’Connor additionally highlighted the agreement’s provisions requiring the consideration of race during the monitor’s hiring process, which he contended would diminish trust in the appointed individual. He stated, “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.” He added, “The parties’ DEI [diversity, equity and inclusion] efforts only serve to undermine this confidence in the government and Boeing’s ethics and anti-fraud efforts.” Ike and Susan Riffel from California, who lost their sons Melvin and Bennett, commented that the judge had acted “the right thing” by rejecting the proposed settlement. In a statement provided by their lawyer, they asserted, “This deal didn’t hold anyone accountable for the deaths of 346 people and did nothing to protect the flying public.” They expressed hope that the decision would lead to “real justice.” Boeing and the Department of Justice have a 30-day period to formulate an alternative plan following the ruling. The aircraft manufacturer has been endeavoring to recover from the repercussions of two almost identical crashes involving its 737 Max planes in 2018 and 2019. The aerospace conglomerate encountered a new crisis in January when a door panel on a new Boeing aircraft operated by Alaska Airlines detached shortly after takeoff. This event renewed inquiries regarding Boeing’s actions to enhance its safety and quality performance since the earlier accidents, which were linked to the company’s flight control system. The door panel failure occurred just prior to the conclusion of a three-year phase of heightened monitoring and reporting. Boeing had consented to this monitoring as part of a 2021 plea agreement to settle an accusation that it had misled regulators concerning the flight control system. In May, the Department of Justice stated that Boeing had breached the conditions of that prior agreement, thereby creating the potential for prosecution. Instead, both parties reached a different agreement, which angered families who had wished for the company to face trial. In his decision, Judge O’Connor noted that it was “not clear what all” Boeing had done to violate the 2021 agreement. Nevertheless, he wrote, “taken as true that Boeing breached the [deal], it is fair to say that the government’s attempt to ensure compliance has failed.” Erin Appelbaum, a partner at Kreindler & Kreindler, a firm representing some families of the victims of the 2019 Ethiopian Airlines Flight 302, characterized Thursday’s ruling as an “excellent decision and a significant victory” for the victims’ families. She stated, “We anticipate a significant renegotiation of the plea deal that incorporates terms truly commensurate with the gravity of Boeing’s crimes.” She added, “It’s time for the [Department of Justice] to end its lenient treatment of Boeing and demand real accountability.”