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US judge rejects Boeing 737 MAX deal over diversity policies
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US judge rejects Boeing 737 MAX deal over diversity policies

In his ruling, U.S. District Judge Reed O’Connor blocked Boeing’s guilty plea under a deferred prosecution agreement in the case that dates back to two fatal crashes in 2018 and 2019 that killed 346 people.

The deal would have seen the Justice Department choose a monitor to ensure Boeing complies with the deal.

But O’Connor wrote that the Justice Department’s diversity, equity and inclusion (DEI) policies left him “skeptical” of assurances that he would choose an instructor based solely on skills.

“The court is not satisfied … that the government will not choose an observer without racial considerations,” said O’Connor, who gave the parties 30 days to inform the court of the next steps in the case .

Under the agreement, the Justice Department was to choose six candidates to serve as comptroller, and Boeing had the option to exclude one.

But, O’Connor wrote in the 12-page decision, he fears Boeing will decide which one to strike “in a discriminatory manner and with racial considerations.”

He cited Boeing policies that commit to goals such as adequate representation of Black people in company leadership.

His decision criticized DEI policies at Boeing and the Justice Department, calling them “contrary to the public interest.”

“In a case of this magnitude, it is in the best interests of justice for the public to be confident that the selection of observers is made solely on the basis of their qualifications,” O’Connor said.

“The parties’ DEI efforts only undermine this confidence in the government’s and Boeing’s anti-fraud efforts.”

Neither Boeing nor the Justice Department had immediate comment on the decision.

The agreement “marginalizes” the court

The move comes as DEI policies face growing attacks from U.S. businesses and governments, with supporters of the initiatives – which aim to correct bias in U.S. workplaces – deferring even more on defense after Donald Trump’s victory in the American presidential election.

Paul Cassell, a University of Utah law professor who represents the families of the MAX victims, praised O’Connor’s decision, calling the agreement a “comfortable agreement” between Boeing and the Department of Defense. Justice.

“This order should lead to a meaningful renegotiation of the plea agreement to reflect the 346 deaths criminally caused by Boeing and the establishment of appropriate oversight of Boeing to ensure that it never again commits a crime of this type in the future,” Cassell said in a statement. .

The Justice Department and Boeing reached an agreement to defer prosecutions in 2021 after the two crashes, but in May Justice Department officials said Boeing had violated it, raising the possibility of new prosecutions.

Over the summer, Boeing and the DOJ reached a new agreement in which Boeing agreed to pay an additional $243.6 million in fines. Boeing has been under scrutiny since January, when a panel exploded mid-flight on an Alaska Airlines flight of a 737 MAX.

O’Connor cited a second reason for rejecting the agreement, concluding that the Justice Department’s process of restricting the court’s oversight of the Monitor inappropriately “marginalizes” the court in light of the department’s record of Justice in the case.

“It is fair to say that the government’s attempt to ensure compliance with the rules has failed,” he wrote. “At this point, the public interest demands that the Court intervene.”

Shares of Boeing fell 0.7 percent in afternoon trading.