Federal judge rejects Boeing deal with DOJ due to concerns about diversity

Dec 06, 2024

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Craig Nigrelli Reporter

By Craig Nigrelli (Reporter ), Brock Koller (Senior Producer), Jack Henry (Video Editor )

A federal judge in Texas has scuttled a deal between the Justice Department and aircraft maker Boeing related to two plane crashes. The judge ruled the plea arrangement inappropriately tied the court’s hands by adding diversity considerations to selecting a compliance officer. That officer would oversee and make sure Boeing is living up to its end of the deal.

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Two 737 Max crashes, one in 2018 near Indonesia, and one in 2019 near Ethiopia, left 346 people dead. The FAA then grounded all 737 Max jets.

Earlier this year, the Justice Department accused Boeing of violating its probation over a fraud-conspiracy charge related to those two crashes. Boeing agreed to plead guilty, which led to this week’s court action.

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Judge Reed O’Connor wrote that contradictory explanations were given regarding the role that race and diversity would play in selecting a compliance monitor. He said it’s in the utmost interest of justice and public confidence that the selection of a compliance monitor is based solely on competence.

The judge also noted that the Justice Department cited an executive order from the Biden administration in 2021 to promote diversity, equity and inclusion policies at federal agencies. Judge O’Connor said this would inject discrimination into the monitor selection process.

He also pointed out that Boeing had removed materials related to DEI from its website. The judge had asked for more information on that particular topic.

The Justice Department has said it picks monitors based on merit from the broadest possible pool of candidates. Boeing hasn’t commented on the ruling or rejection. The judge ordered both sides to update him within 30 days on how they plan to proceed.

Tags: Boeing, Boeing 737 MAX, federal judge, Plane, plane crash, Plea deal, U.S. Department of Justice

[Craig]

A FEDERAL JUDGE IN TEXAS HAS SCUTTLED A DEAL BETWEEN THE JUSTICE DEPARTMENT AND AIRCRAFT-MAKER BOEING, RELATED TO TWO DEADLY PLANE CRASHES. THE JUDGE RULED THE PLEA ARRANGEMENT INAPPROPRIATELY TIED THE COURT’S HANDS BY ADDING DIVERSITY CONSIDERATIONS FOR THE YET TO BE NAMED COMPLIANCE OFFICER, WHO WOULD OVERSEE AND MAKE SURE BOEING IS LIVING UP TO ITS END OF THE DEAL.
TWO 737 MAX CRASHES, ONE IN 2018 NEAR INDONESIA, THE OTHER IN 2019 IN ETHIOPIA, LEFT 346 PEOPLE DEAD. THE F-A-A THEN GROUNDED ALL 737 MAX JETS.
EARLIER THIS YEAR, THE JUSTICE DEPARTMENT ACCUSED BOEING OF VIOLATING ITS PROBATION OVER A FRAUD/CONSPIRACY CHARGE RELATED TO THE TWO CRASHES. BOEING AGREED TO PLEAD GUILTY WHICH LED TO THIS WEEK’S COURT ACTION.
JUDGE REED O’CONNOR WROTE THAT CONTRADICTORY EXPLANATIONS WERE GIVEN WHEN COMES TO THE ROLE THAT RACE AND DIVERSITY WOULD PLAY IN THE SELECTION OF A COMPLIANCE MONITOR. QUOTE “ IN A CASE OF THIS MAGNITUDE, IT IS IN THE UTMOST INTEREST OF JUSTICE THAT THE PUBLIC IS CONFIDENT THAT THIS MONITOR SELECTION IS DONE BASED SOLELY ON COMPETENCY.”
COMPLIANCE MONITORS ARE SOMEWHAT COMMON WHEN IT COMES TO CORPORATE CRIMINAL SETTLEMENTS. THE JUDGE ALSO NOTED THE JUSTICE DEPARTMENT CITED AN EXECUTIVE ORDER FROM THE BIDEN ADMINISTRATION IN 2021, TO PROMOTE DIVERSITY, EQUITY AND INCLUSION POLICIES AT FEDERAL AGENCIES. JUDGE O’CONNOR SAID THIS WOULD INJECT DISCRIMINATION INTO THE MONITOR SELECTION PROCESS. HE ALSO POINTED OUT, THAT BOEING REMOVED MATERIALS FROM ITS WEBSITE, RELATED TO SO-CALLED D-E-I, AFTER HE ASKED FOR MORE INFORMATION ON THAT PARTICULAR TOPIC, FROM BOTH SIDES.
THE JUSTICE DEPARTMENT SAID PREVIOUSLY THAT IT PICKS MONITORS SOLELY BASED ON MERIT FROM THE BROADEST POSSIBLE POOL OF CANDIDATES. BOEING HAS NOT COMMENTED ON THE RULING AND REJECTION. THE JUDGE ORDERED BOTH SIDES TO UPDATE HIM, WITHIN 30 DAYS, ON HOW THEY PLAN TO PROCEED. FOR MORE UNBIASED UPDATES, DOWNLOAD THE STRAIGHT ARROW NEWS AP

Federal judge rejects Boeing deal with DOJ due to concerns about diversity

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